Oil prices fell for a third straight day, hitting a 17-week low on Wednesday amid global economic concerns.
Brent closed at $65.31 per barrel while WTI slipped to $61.69, pressured by supply fears.
Oil prices dropped to a 17-week low on Wednesday, marking the third consecutive day of losses, as traders reacted to the U.S. government shutdown, rising concerns over the global economy, and expectations of more supply from OPEC+.
Brent crude futures declined by 72 cents, or 1.1 per cent, to settle at $65.31 per barrel, while U.S. West Texas Intermediate (WTI) fell by 68 cents, or 1.1 per cent, to $61.69. Brent is now on track for its lowest close since early June, and WTI for its lowest since late May. U.S. gasoline futures were also set for their weakest level since September 2024.
Market watchers expect OPEC+ to increase production by as much as 500,000 barrels per day (bpd) in November, after a similar rise in September. Analysts believe Saudi Arabia is keen to regain market share, but OPEC has dismissed reports of a planned supply hike as “misleading.”
Adding to pressure, U.S. crude inventories rose more than expected last week. The Energy Information Administration reported a build-up of 1.8 million barrels, nearly double analysts’ forecasts.
Concerns over demand are also weighing on the market. The U.S. government shutdown has slowed economic activity, while new data showed private sector jobs unexpectedly declined in September. In Asia, factory activity contracted across major economies, raising further worries about fuel consumption.
Meanwhile, in Russia, fuel supply issues persist following Ukrainian strikes. Though officials said the domestic market was “under control,” some regions face shortages. A separate refinery fire in the Yaroslavl region was contained and not linked to drone attacks.
Despite these pressures, analysts say the focus will remain on OPEC+ decisions and how global demand trends evolve in the coming weeks.
