Economic growth concerns intensified, with U.S. crude tumbling as much as 3 percent for its biggest drop in two weeks

On Thursday (October 21), U.
S.
oil futures fell $0.
92, or 1.
1%, to settle at $82.
50 per barrel, the biggest drop in nearly two weeks
.
Brent fell $1.
21, or $1.
41, to close at $84.
61 a barrel, after hitting its highest since October 2018 at $86.
10
.
Oil prices plunged to a one-week low as concerns about global economic growth intensified, coupled with the news released by the National Oceanic and Atmospheric Administration that winter temperatures in most parts of the United States are expected to be above average
.

Eastern Europe and Russia have reimposed lockdowns due to rising coronavirus cases, threatening the global economic recovery
.
Ed Moya, senior market analyst at Oanda Corp, said the possibility of being under a global economic lockdown this winter complicates positive economic outlook expectations and weakens momentum, which is a real pain point
for the global economy.

According to a news released Thursday morning by the National Oceanic and Atmospheric Administration (NOAA), winter temperatures are expected to be above average
in most parts of the United States.
Bob Yawger, head of Mizuho Energy Futures, said the report showed a drier and warmer climate in the southern and eastern parts of the United States, putting pressure
on petroleum products.

Oil supplies dwindled as coal and natural gas shortages drove up crude consumption, keeping oil prices at their highest level
since 2014.
Saudi Arabia noted that any additional crude from OPEC+ would do little to curb soaring natural gas costs and predicted that oil demand could increase by as much as 600,000 barrels
per day if winters in the northern hemisphere are colder than usual.

Research firm Energy Aspects Ltd.
said in a note this week that the oil market is tightening, but neither additional supply from OPEC+ nor the release of the U.
S.
Strategic Petroleum Reserve can meet the growing demand
for sweet crude.
The U.
S
.
Energy Information Administration (EIA) reported tight crude and refined product inventories on Wednesday, with crude inventories in Cushing, the Oklahoma storage center, falling to a three-year low.
Brent crude prices have risen more than 60 percent
this year, driven by slow supply increases in the OPEC+ alliance of the Organization of the Petroleum Exporting Countries and its allies and global coal and gas shortages.

Oil prices have come under pressure
from falling coal and natural gas prices.
Thermal coal futures fell 9.
87% overnight, extending this
week's decline.
Technical indicators show that oil prices have shown signs of correction since the beginning of the month
.