Oil extended a decline as higher US crude stockpiles reinforced worries about an oversupplied market, and wider financial markets retreated.

Brent traded below $65 a barrel after shedding about 1% over the previous two sessions, with West Texas Intermediate near $61. Commercial inventories of crude rose for a second week, with gauges of both gasoline and distillate demand also weak — even as the US summer driving season approaches.

In broader markets, concerns about Washington’s ballooning deficit spurred declines in US stocks, government bonds and the dollar, with Asian equities set to follow them lower. The ructions come at a time when investor appetite for US assets was already waning across the globe.

Crude remains under pressure as OPEC and its allies push barrels back into a market that’s already looking well-supplied, with futures about 13% lower year-to-date. The US-led trade war has also driven losses on concerns that the globe-spanning disruption will slow economic growth, hurting energy demand.

Geopolitical elements remained in play, including nuclear talks between the US and Iran, and a report this week that Israel was preparing to strike Tehran. In addition, investors are tracking long-running efforts to bring an end to the war in Ukraine. Both could shift sanctions policy and impact global balances.

Prices:

  • Brent for July settlement fell 0.5% at $64.61 a barrel at 8:24 a.m. in Singapore.

  • WTI for July delivery declined 0.5% to $61.28 a barrel.

. Read more on Markets by NDTV Profit.Crude remains under pressure as OPEC and its allies push barrels back into a market that’s already looking well-supplied.  Read MoreMarkets, Business, Bloomberg 

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