FX.co ★ Oil Extends Losses On China Demand Worries

Oil prices fell for a second straight session on Thursday, as concerns over geopolitical tensions eased and focus shifted back to rising numbers of COVID-19 cases in China.

Benchmark Brent crude futures dropped half a percent to $92.43 a barrel, while WTI crude futures were down 0.7 percent at $85.00 a barrel.

Geopolitical tensions eased after NATO's chief said there are no indications that the deadly explosion in Poland was an intentional attack by Russia.

Russian oil shipments via the Druzhba pipeline to Hungary restarted, helping ease worries over supply disruptions.

Supply to certain parts of Eastern and Central Europe via the pipeline had been suspended on Tuesday for technical reasons.

Additionally, rising numbers of COVID-19 cases in China raised concerns about the global economic outlook and added to demand worries in the world's largest crude importer.

The International Energy Agency (IEA) has lowered its global oil demand growth estimate for next year again, citing significant uncertainties on the oil market such as weak economic growth in China, Europe's energy crisis and a strong dollar.