2021.07.1510:20:00UTC+00Oil Extends Losses On Oversupply Fears

Oil prices were moving lower on Thursday to extend losses from the previous session amid expectations that a compromise deal between leading OPEC producers will inject a sharp increase of oil supply into an extremely tight market.

A build in U.S. fuel inventories also raised concerns over demand in the world's largest consumer.

Brent crude futures for September delivery dropped 50 cents, or 0.7 percent, to $74.26 a barrel in European trade, while U.S. West Texas Intermediate (WTI) crude futures for August settlement were down 68 cents, or 0.9 percent, at $72.45 per barrel.

Both benchmarks fell over 2 percent in the previous session after data showed a drop in China's first-half crude imports and reports suggested that major crude producers Saudi Arabia and the United Arab Emirates have arrived at a compromise with regard to production levels.

Investors braced for increased supplies after Reuters reported that Saudi Arabia and the United Arab Emirates (UAE) had reached a compromise on production levels.

In the United States, the Energy Information Administration (EIA) data showed gasoline stockpiles increased by 1 million barrels last week, while distillate stockpiles rose by 3.7 million barrels.

Crude stockpiles fell for an eighth straight week last week, giving some comfort to bullish investors.