Crude oil futures ended sharply lower on Wednesday on rising COVID-19 cases in Europe. New waves of COVID-19 cases in Europe which drove some governments to reimpose restrictions weighed on prices. Further, oil prices were also weighed down by warnings from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency that the oil market will likely see excess supply in the fourth quarter. OPEC Secretary General Mohammad Barkindo said the group sees signs of an oil supply surplus building beginning next month, adding that its members and allies will have to be very, very cautious. However, Data from Energy Information Administration (EIA) showed crude stockpiles in the US dropped by 2.1 million barrels last week, nearly twice the expected drop.
Benchmark crude oil futures for December delivery fell $2.40 or 3 percent to settle at $78.36 a barrel on the New York Mercantile Exchange. Brent crude for January delivery dropped $2.02 or 2.5 percent to settle at $80.41 a barrel on London's Intercontinental Exchange.