For the first time since December 2021, Brent oil has dropped below $70 a barrel, falling 2.8%, as oversupply concerns continue to grip the market.

The decline is driven by several factors:

Weak economic data from China and the US—the world’s top two oil consumers—has raised concerns about future demand.
Surging output from non-OPEC nations, adding to worries of a potential surplus next year.
Even OPEC+’s decision to delay adding 180,000 barrels a day in production hasn’t been enough to prevent the slump. The market is also seeing speculative selling, with traders holding the smallest net-long positions in crude on record.

As oil producers brace for more volatility, the market watches for potential further drops amid persistent demand worries and financial repositioning.