05:01 AM EDT, 09/25/2025 (MT Newswires) -- Crude oil prices dropped on Thursday ahead of expected weakness in winter demand and a bearish outlook on supply fundamentals.

Brent crude at last look fell 0.7% to US$68.80/barrel and West Texas Intermediate crude lost 0.8% to US$64.47/b. This comes after prices surged to reach their highest since Aug. 1 due to a surprise drop in U.S. weekly crude inventories and concerns about impacts of Ukraine's attacks on Russian energy infrastructure, Reuters said in a Thursday report.

However, bearish expectations on supply emerged as more oil is expected in days from Iraqi Kurdistan, weighing on prices, the report said. This comes after eight oil firms reached a deal on Wednesday with Iraq's federal and Kurdish regional governments to resume exports.

"The return of Kurdish supplies adds back fears of an oversupply narrative, propelling a pullback in prices that hover near a seven-week high," Reuters quoted Priyanka Sachdeva, senior market analyst at Phillip Nova, as saying.

Meanwhile, two consecutive down days for U.S. stocks are putting further pressure on oil prices, Reuters reported, citing analysts.