Crude oil prices are set for a quarterly loss for the first time in more than two years as global economic concerns outweigh the prospect of lower production.
the international benchmark, was down 1.0% at $86.30 in morning trading and down 21% over the last three months.
West Texas Intermediate,
the U.S. standard, was down 0.9% at $80.50, down 24% over a three-month period. The last time the price of oil fell over a quarter was March 2020, although prices remain substantially elevated since their pandemic-driven lows.
The potential for output cuts from the Organization of Petroleum Exporting Countries and its allies at their upcoming October meeting could support oil prices. OPEC+ members have begun discussions about an output cut to be confirmed at their meeting on Oct. 5, Reuters reported on Thursday. Meanwhile, the U.S. government is set to end its Strategic Petroleum Reserve releases in October, raising the prospect it will begin buying back oil as prices drop to refill reserves.
Analysts at MKM Partners said in a note on Thursday that the market appears to be expecting a modest cut in production from OPEC+ and that the cartel and its allies are likely to defend a level of around $90 a barrel for Brent crude.
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