(MENAFN) Oil prices experienced a continuation of losses on Wednesday as concerns surrounding global economic challenges intensified. These losses erased the price gains that were initially achieved following Saudi Arabia's unexpected announcement over the weekend to deepen output cuts.
At 09:10 a.m. Saudi time, Brent crude futures were down 53 cents, equivalent to a decrease of 0.69 percent, settling at USD75.76 per barrel. Similarly, US West Texas Intermediate crude futures fell by 48 cents, or 0.67 percent, reaching USD71.26 per barrel.
The recent surge in oil prices was primarily driven by Saudi Arabia's decision to reduce its output by 1 million barrels per day to a level of 9 million bpd in July. This unexpected move had initially resulted in both benchmark prices rising by more than USD1 on Monday.
However, the subsequent decline in prices reflects growing apprehension regarding the global economic landscape. Various factors, such as ongoing uncertainties related to the COVID-19 pandemic, geopolitical tensions, and concerns about the pace of economic recovery, have deepened these worries. As a result, market sentiment has shifted, leading to a decline in oil prices.
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