Crude oil prices declined sharply on Thursday, weighed down by a forecast that U.S. weather this winter will likely be warmer than average.
Profit taking after recent strong gains, and lower coal and natural gas prices contributed as well to oil’s fall today.
Oil’s reversal after early gains was also due to fears that China Evergrande’s debt troubles could hit China’s broader economic recovery.
West Texas Intermediate Crude oil futures for December ended down by $0.92 or about 1.1% at $82.50 a barrel.
WTI Crude oil futures, which had climbed to $83.96 a barrel in Asian trading, dropped to $80.79 later on in the session.
Brent crude futures were down $1.19 or 1.4% at $84.63 a little while ago. The contract had climbed past $86.00 a barrel earlier in the day.
Coal prices dropped by about 11% in China after the country flagged it might intervene to tame record high coal prices and that it would ensure coal mines operate at full capacity.
Meanwhile, Kuwait has reportedly begun to increase its crude production in accordance with an agreement reached by OPEC+.