Oil Lower In Asia On Supply Glut Fears

SINGAPORE: Oil prices fell in Asia on Thursday after the Organisation of Petroleum Exporting Countries (OPEC) warned of an oversupply as uncertainty surrounds the outlook for the global economy, analysts said.

New York’s main contract, light sweet crude for delivery in January fell 19 cents to $86.58 a barrel and Brent North Sea crude for January delivery shed 15 cents to $109.35.

Crude prices were down following “preliminary warnings from the cartel that downside demand risk was increasing”, said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst and Young.

“Markets continue to be overshadowed by concerns of looming oversupply next year with limited demand growth.”

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