Oil falls for 3rd session as supply outlook falters

Oil drilling rigs

Oil prices fell at the close of trading today, Oct. 28, extending losses for the third consecutive day, as investors assessed the repercussions of US sanctions on Russia's two largest oil companies, along with speculation about an OPEC+ production increase.

Brent crude futures for December delivery dropped 1.86%, or $1.22, to $64.40 a barrel.

WTI crude futures for December delivery lost 1.89%, or $1.16, to $60.15 a barrel.

Oil prices came under pressure this week due to reports that the OPEC+ alliance is considering another 137,000 barrels per day increase in production ceiling starting in December.

Concerns about global supply overhangs stemming from these reports have limited the positive impact of the easing of trade tensions between the United States and China, following the launch of a new round of bilateral negotiations.

The prospect of a decline in global crude supplies has also increased after the United States imposed sanctions on Russia's two largest oil companies, Lukoil and Rosneft.

However, Fatih Birol, Executive Director of the International Energy Agency, said in press statements today that the impact of sanctions on oil-exporting countries' supplies would be limited due to excess production capacity.