On Thursday, Oil prices went down more than 1 per cent, which extended losses as investors braced for more supplies following a compromise between top OPEC producers and US fuel stocks rose, raising concerns about demand in the world’s largest consumer.

Brent crude futures for September dropped 91 cents, or 1.2 per cent, to $73.85 a barrel by 0158 GMT, while US West Texas Intermediate (WTI) crude for August was at $72.21 a barrel, down 92 cents, or 1.3 per cent.

Yesterday, both the benchmarks slid more than 2 per cent after Reuters reported that Saudi Arabia and the UAE reached a compromise that should pave the way for a deal to supply more crude to a tight oil market and excellent soaring prices.

“The market is not taking any chances. Prices are very overbought anyway, so traders might want to take some money off the table before the deal is concrete,” said Avtar Sandu, senior commodity trader at Phillips Futures in Singapore.

“The deal will take some time to get finalized, but it seems the UAE will be allowed to produce more output next year,” OANDA analyst Edward Moya said in a note.

“It seems OPEC+ will shortly have a plan to raise output, and that is welcomed the news as surging demand had oil market getting too tight.”