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Oil prices slide further as traders brace for supply increase

Global oil prices hit their highest levels in three years today as fuel demand continued to pick up amid the reopening of the global economy after the pandemic.
Global benchmarks WTI and Brent Crude added 1.24 per cent and 1.34 per cent respectively on Wednesday

Oil prices slid further on Thursday as traders prepare for a wave of supply to flood the market.

Benchmarks WTI Crude and Brent Crude were down 1.01 per cent and 0.92 per cent respectively today.

Read more: Opec+ end deadlock over oil supply policy, says source

Prices slid two per cent yesterday after news broke that an impasse among Opec+ over oil supply policy could soon end.

Sources told Reuters yesterday that the United Arab Emirates and Saudi Arabia had reached a compromise over future oil production volumes. 

The deal was reached after Riyadh agreed to raise the UAE’s baseline to 3.65 million barrels per day from April 2022, the date when the current pact had been scheduled to end.

Opec+ still needs to take a final decision on output policy, after talks this month stalled because of the Saudi-UAE deadlock.

An increase in supply should put downward pressure on oil prices, which is likely prompting traders to look to alternative investments.

Read more: Oil prices reverse steep losses amid supply uncertainty