RoydadNaft –  Brent crude futures tumbled $0.73, or 1.19%, to settle at $61.47 a barrel on Wednesday, extending a slump in global oil markets. The U.S. benchmark West Texas Intermediate (WTI) crude followed suit, shedding $0.77, or 1.40%, to $57.64 a barrel.

The broader oil market continued its downward spiral amid mounting fears of a global economic slowdown and a flood of supply from OPEC+ producers, who have opted to hold production steady at elevated levels. Traders pointed to these dynamics as the primary drivers behind the latest leg down, with Brent and WTI both posting sharp declines.

Market analysts warn that persistent geopolitical frictions in the Middle East, coupled with erratic demand signals from China—the world’s top oil importer—could keep prices pinned under pressure in the near term. Asian session volumes dipped 2% from the prior day, as investors rotated into traditional safe havens like gold amid the uncertainty.

In its latest monthly report, the Organization of the Petroleum Exporting Countries (OPEC) sounded the alarm, cautioning that absent swift intervention, Brent could breach the $60-a-barrel mark. Such a drop would deal a heavy blow to the fiscal plans of oil-reliant nations, exacerbating budget strains in an already volatile environment.

On a brighter note for U.S. policymakers, fresh economic data revealed easing energy-driven inflation, potentially giving the Federal Reserve more room to maneuver on interest rates. Still, experts urge investors to prioritize portfolio diversification as a bulwark against the oil sector’s wild swings.