Crude Crumbles on Oversupply Warnings

Crude oil prices crumbled on Wednesday after the International Energy Agency and OPEC warned of impending oversupply and as Covid-19 cases in Europe increased the downside risks to demand recovery, though a fall in US gasoline stocks curbed losses.
Brent crude futures dropped 79 cents, or 1%, to $81.64 a barrel, erasing Tuesday's 38-cent gain, Reuters reported.
WTI crude futures fell 94 cents, or 1.2%, to $79.82 a barrel, extending a 12-cent loss from Tuesday.
The IEA on Tuesday warned that while the "oil market remains tight by all measures, ... a reprieve from the price rally could be on the horizon ... due to rising oil supplies".
The agency said that high price levels will see US oil production rising again in 2022, accounting for about 60% of its forecast of 1.9 million barrels per day for non-OPEC supply growth.
On Tuesday, OPEC Secretary-General Mohammad Barkindo said the group sees signs of an oil supply surplus building from next mont,h adding that its members and allies will have to be "very, very cautious".
New waves of Covid-19 cases in Europe, which drove some governments to reimpose restrictions, also weighed on prices.
"The impact has thus far been negligible," oil brokerage PVM's Stephen Brennock said.