Oil prices sink again, as investors look out for more supply | Reuters

Oil prices sink again, as investors look out for more supply | Reuters

Oil prices fell by more than $1 a barrel on Thursday on expectations of more crude hitting the market after a compromise deal between leading OPEC producers and a surprisingly poor weekly reading on U.S. fuel demand.

Brent crude settled at $73.47 a barrel, dropping $1.29, or 1.7%. U.S. West Texas Intermediate (WTI) crude settled at $71.65 a barrel, down $1.48, or 2.2%.

The slide continued Wednesday’s losses, after Reuters reported that Saudi Arabia and the United Arab Emirates had reached an accord that should pave the way for a deal to supply more crude to a tight oil market.

A deal has yet to be solidified, and the UAE energy ministry said deliberations are continuing.

“That’s still the big elephant in the room - we had a deal, we didn’t have a deal - and that’s raising concerns,” said Phil Flynn of Price Futures Group.