Brent futures fell below $70 a barrel for the first time since December 2021, marking a new low in a price slump driven by strong supply, demand concerns, and heavy speculative selling, according to Bloomberg.

The global benchmark declined by 2.8%, the report noted.

Weak economic data from China and the US have raised fears about oil demand in the world's top two consuming nations, increasing concerns that a supply surplus could emerge next year.

This is further exacerbated by rising production from countries outside the Organization of Petroleum Exporting Countries (OPEC), the report said.

The downward trend persists even though the OPEC+ alliance has postponed its plan to increase output by 180,000 barrels per day next month, a measure originally intended to gradually restart production halted since 2022 to support prices.

Speculators now hold the smallest net-long position in crude on record, indicating that significant financial repositioning has contributed to the recent price decline.