Oil slips as markets assess OPEC+ plans, demand concerns
Oil prices fell on Wednesday, extending losses from the previous two sessions, as investors weighed OPEC+ plans for a larger output hike next month, while data from the U.S. and Asia showed signs of demand waning.
Brent crude futures for December delivery were down 56 cents, or 0.9%, to $65.47 a barrel at 1316 GMT. U.S. West Texas Intermediate crude for November delivery was down 53 cents, also 0.9% lower, to $61.84 a barrel.
Both were trading at their lowest since early September, after settling more than 3% lower on Monday and losing another 1.5% on Tuesday.
Oil has dropped on market anticipation of a similar sized OPEC+ production increase in November to the 500,000 barrels per day hike in September, and on U.S. and Asian demand starting to fall, Rystad analyst Janiv Shah said.
"U.S. drawdowns have slowed, so some bullish movement could start to flip," he added
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, could agree to raise oil production by up to 500,000 bpd in November, triple the increase made for October, as Saudi Arabia seeks to reclaim market share, three sources familiar with the talks said.
However, OPEC wrote on X that media reports of plans to raise output by 500,000 bpd were misleading.
Meanwhile, in the United States, an industry report showed crude stockpiles fell while gasoline and distillate inventories rose in the week ended September 26, according to market sources citing American Petroleum Institute estimates on Tuesday.
Source: Reuters.com
