Crude oil prices declined sharply on Thursday, sending the most active crude futures contracts to their lowest close in nearly a month, amid rising concerns about outlook for energy demand and likely excess supply in the market.
Worries about demand have resurfaced due to the spread of the Delta variant of the coronavirus and possibility of fresh economic restrictions in several places across the world.
There are concerns that a compromise deal between leading OPEC producers could result in a sharp increase in oil supply into an extremely tight market.
West Texas Intermediate Crude oil futures for August ended down by $1.48 or about 2% at $71.65 a barrel, the lowest settlement since June 18.
Brent crude futures were down $1.45 or nearly 2% at $73.31 a barrel a little while ago.
A Reuters report said Saudi Arabia and the United Arab Emirates had reached a compromise on production levels.
Meanwhile, the UAE energy minister said in a statement on Wednesday that an agreement with OPEC+ regarding its position on an extension of an oil supply deal has not been reached yet, and that deliberations and consultations are going on.