Oil prices fell and heading to record a third weekly loss, following Saudi Arabia's warning of oversupply, as falling stock markets and trade concerns caused uncertain prospects for fuel demand.
Brent crude fell to a two-month low of $ 75.09 a barrel and is on track to record a weekly loss of more than 4%, down nearly $ 10 in the last three weeks. While U.S. crude fell to a 10-week low of $ 65.72 a barrel, down by 3.5% this week.
A global stock market collapse has disrupted the oil market this week as Wall Street saw its biggest daily drop since 2011. Financial markets have been hit hard by a range of concerns including the US-China trade war, a drop in emerging market currencies, rising borrowing costs & bond yields, and economic concerns in Italy. There are also signs of a slowdown in world trade.
After months of concern over the lack of supply before U.S. sanctions on Iran, due to begin on November 4, the oil market has begun to worry about increased supply and potential rising in inventories in many parts of the world.
Saudi Arabia's OPEC governor said oil markets could face oversupply by the end of the year. Saudi Energy Minister Khalid al-Falih said there could be a need to intervene to reduce oil stockpiles after increases in recent months.
