Oil drop to 16-week low on US shutdown and OPEC+ uncertainty
Oil prices fell for a third consecutive session on Wednesday, settling at their lowest levels in four months as a US government shutdown raised concerns over global growth
Oil prices fell for a third consecutive session on Wednesday, settling at their lowest levels in four months as a US government shutdown raised concerns over global growth and speculation mounted about potential OPEC+ supply increases.
Brent crude dropped 68 cents, or 1.0%, to $65.35 a barrel, its weakest close since 5 June.
WTI slipped 59 cents, or 0.9%, to $61.78, the lowest since 30 May.
The shutdown in Washington forced federal agencies to suspend operations after lawmakers failed to reach a funding agreement, heightening fears of delayed economic data and weaker demand. Sentiment was further dampened by a surprise build in US crude stocks, with the Energy Information Administration reporting inventories rose by 1.8 million barrels last week, well above forecasts for a 1.0 million-barrel increase.
Attention is now on OPEC+ ahead of its November meeting. Traders expect the alliance to discuss a supply hike of up to 500,000 barrels per day, three times the increase agreed for October, as Saudi Arabia seeks to defend market share.
Written: Aiman Haikal