Oil Slips: Dollar Strengthens, US Stockpiles Swell
Oil prices weakened on Wednesday amid a broader slump in financial markets and a strengthening US dollar. Brent futures edged down 6 cents (-0.1%) to $64.38 per barrel at 04:08 GMT after hitting a near two-week low; WTI shed 10 cents (-0.17%) to $60.46. Risk-off sentiment prevailed after a sell-off in technology stocks on Wall Street fueled valuation concerns, while the dollar index held near a three-month peak amid differing views within the Fed on the likelihood of a December interest rate cut.
A stronger dollar makes US dollar-denominated oil more expensive for non-dollar buyers, potentially depressing demand. Pressure increased after the American Petroleum Institute (API) reported a rise in US crude inventories in the week ending October 31. Analysts noted a sharp shift in sentiment toward defensiveness, driving flows into the safe-haven dollar, causing oil prices to lose steam.
On the supply side, OPEC+ agreed on Sunday to increase production by 137,000 barrels per day in December, then temporarily halt further increases in the first quarter of 2026. However, analysts believe the pause is unlikely to provide significant support for prices in the short term. Last October, OPEC's own production only increased by ~30,000 bpd—previous OPEC+ increases were restrained by declines in Nigeria, Libya, and Venezuela—so the market remains wary of the risk of oversupply amid fragile demand. (az)
Source: Newsmaker.id
