Oil prices fall as supply increases and Chinese demand decreases

Oil prices declined in early Asian trading on Thursday, pressured lower by increased supply and worries that China's new COVID-19 restrictions may further hurt the global economy.

Brent crude futures fell 37 cents, or 0.4%, to $95.27 a barrel at 00:06 GMT. West Texas Intermediate (WTI) oil futures dropped 32 cents, or 0.4%, to $89.23 per barrel.

Recent market volatility has been influenced by concerns over inadequate supply in the months following Russia's invasion of Ukraine and as OPEC attempted to increase output.

In spite of this, production in both OPEC and the United States has reached its highest level since the outbreak of the coronavirus. OPEC's output hit 29.6 million barrels per day (bpd) in the most recent month, while U.S. output rose to 11.82 million bpd in June, according to a Reuters survey. Since April 2020, both have achieved their highest points.

As a result of new COVID infections, the worst heat wave in decades, and a problematic property market, China's manufacturing activity continued to decline in August, signaling that the economy may struggle to retain momentum.

Group of Seven finance ministers will discuss the U.S. Biden administration's proposed price ceiling on Russian oil during their meeting on Friday, according to the White House.