Oil supply concerns

Oil falls as OPEC+ plan raises concerns about oversupply Oil extended losses at the lowest level in almost four months after OPEC+ plan raised concerns about oversupply. Brent fell 3.4% on Monday to below $78 a barrel. U.S. crude was below $74. The alliance is set to begin easing production cuts in early October, despite ongoing concerns about the demand outlook and strong supply from outside the group. Warren Patterson, head of commodity strategy at ING Group in Singapore, said the end of the cuts would “leave the market with a small surplus next year”. But Patterson made it clear that OPEC+ could pause the return of barrels if market conditions do not allow for additional supply. Oil prices have been trending lower since early April as geopolitical risks eased, demand showed signs of weakening and some refineries cut operating rates.