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2025.09.0416:14:58UTC+00Crude Oil Extends Downturn on Ample Supply

On Thursday, WTI crude oil futures dropped to $63.5 per barrel, following a 2.5% decline from the previous day. This decrease was exacerbated by unexpected news of an increase in US crude inventories, which surged by 2.4 million barrels for the week ending August 29th. This rise exceeded expectations and indicated reduced immediate demand and excess stock levels, corroborating data from the API. Additionally, OPEC+ is considering increasing production by scaling back on previous cuts and potentially boosting output for October, which could further saturate the market. Analysts are cautioning about an impending worldwide oversupply. In this scenario, refinery demand is lagging as the summer driving season concludes, and the outlook for fuel demand remains uncertain due to recent economic data pointing to a slowdown in the US economy.

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