Oil prices fall as investors take profits

This aerial photo shows an oil rig in the Gulf of Thailand on Sept. 5, 2019. (AFP)

SULAIMANI (ESTA) — Oil prices slipped on Thursday as some investors scooped up profits from the recent rally.

Brent crude futures fell 68 cents to $85.14 a barrel at 0717 GMT, turning down from earlier gains that took the benchmark to the highest since October 2018.

U.S. West Texas Intermediate (WTI) crude futures dropped 44 cents to $82.98 per barrel.

“We saw some correction, but overall sentiment remained firm as there have been no large increase in output by the United States or OPEC,” Reuters quoted Satoru Yoshida, a commodity analyst with Rakuten Securities, as saying.

“Brent could reach $90 a barrel later this year as tightness in global oil markets will likely continue as U.S. decarbonization efforts will cap output increases while demand will increase as more power companies switch fuel from coal and gas,” he said.

Crude prices have risen as supply has tightened, with the Organization of the Petroleum Exporting Countries (OPEC) maintaining a slow increase in supply rather than intervening to add more barrels to the market.

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