Brent oil tumbles below $70 as oversupply fears deepen rout

The global benchmark fell 2.8%.

Brent futures dropped below $70 a barrel for the first time since December 2021, a fresh leg lower in a price slump spurred by robust supplies, demand concerns and rampant speculative selling.

The global benchmark fell 2.8%.

Downbeat economic data from China and the US has stirred fears about oil demand in the top two consumers, adding to concerns that a surplus will emerge next year. That’s being compounded by surging output in producing nations outside the Organization of Petroleum Exporting Countries.

The bearish rut comes despite the OPEC+ alliance postponing its original plan to add 180,000 barrels a day next month as it gradually restarts output that was halted since 2022 in a bid to shore up prices.

Speculators currently hold the smallest net-long position in crude on record, a sign that some of the price decline has been driven by major moves in financial positioning.