U.S. crude oil on pace for third monthly loss in a row in September

U.S. crude oil prices are on pace for a third monthly loss in a row in September as rising supplies from OPEC+ and weak demand in China haunt the market.

The U.S. benchmark has declined more than 7% for the month, while global benchmark Brent has fallen about 9%.

“Oil markets are experiencing a panic attack,” Amarpreet Singh, energy analyst at Barclays, told clients in a Friday note. “Balances are set to loosen next year, but concerns are likely overdone.”

Barclays expects Brent to average $85 in 2025.

Here are Monday’s energy prices:

• West Texas Intermediate November contract: $68.23, up 5 cents, or 0.07%. Year to date, U.S. crude oil has fallen nearly 5%.
• Brent November contract: $71.69 per barrel, down 29 cents, or 0.4%. Year to date, the global benchmark has declined nearly 7%.
• RBOB Gasoline October contract: $1.954 per gallon, up 0.05%. Year to date, gasoline has pulled back about 7%.
• Natural Gas November contract: $2.896 per thousand cubic feet, down 0.21%. Year to date, gas has gained about 16%.

Oil prices remain under pressure in part because OPEC+ plans to begin increasing production in December, and as demand in China, the world’s largest crude importer, remains soft.

Prices are finding little support from red hot tensions in the Middle East even after Israel killed Hezbollah leader Hassan Nasrallah in an airstrike in Beirut on Friday. The Netanyahu government is pummeling the Iran-backed militia group, with concerns growing that Israel might launch a ground operation in Lebanon.

“We believe that this price action reflects that the geopolitical risk premium remains limited [amid] market expectations of potentially higher oil supply” from Libya and Saudi Arabia, Daan Struyven, head oil analyst at Goldman Sachs, told clients in a Sunday note.