Oil extends losses on demand concerns; Brent crude at below $78/bbl

Crude oil futures were extending their losses on Tuesday in Asia, after plummeting to four-month lows in the previous session on concerns over demand.

At 03:30 GMT, Brent crude was down 49 cents at $77.87.barrel, while US crude declined 51 cents to $73.71/barrel.

Crude futures had slumped overnight by more than $2/bbl, sending Brent crude below $80/bbl for the first time since February.

This followed a 2 June decision by oil cartel OPEC and its allies (OPEC+) decided to extend deep production cuts into 2025.

The group has agreed to extend 3.66 million barrel/day production cut by 12 months to the end of 2025; as well as keep the voluntary output cuts totalling 2.2 million barrel/day by three months until end-September of 2024.

Thereafter, the voluntary portion will be phased out over the following 12 months until September 2025.

The extension on production cuts indicates that the market could be softer for longer, while demand worries linger, analysts said.