Oil slid for a fourth day as OPEC is expected to agree on restoring more idled supply in a meeting over the weekend, while the ongoing US government shutdown fueled risk-off sentiment.
West Texas Intermediate declined to trade near $61 a barrel. Brent traded near $65. Early signs of global oversupply may be emerging in the Middle East, while US crude and gasoline stockpiles swelled last week.
In Washington, political uncertainty added another layer of concern as White House press secretary Karoline Leavitt warned that layoffs tied to the federal government shutdown are likely to number in the thousands. House Speaker Mike Johnson reinforced the stalemate by saying there is nothing to negotiate on a stopgap spending bill that would reopen the government, dampening hopes of a quick resolution.
This week’s price slump was partly stoked by the possibility that Organization of the Petroleum Exporting Countries and its partners could consider fast-tracking their latest round of production hikes when they meet on Sunday. Some Wall Street banks are predicting Brent will drop to the $50s-a-barrel range next year.
Prices have found some support from the fact that China has been purchasing large amounts of oil for its strategic reserve, easing the buildup of inventories in the West. Those purchases may slow next year, according to Rystad Energy.
“The focus for oil this week is squarely on the OPEC meeting over the weekend. We expect they will agree to continue adding barrels back to the market even amid forecasts for high inventory builds in 2026,” said Edward Bell, acting group head of research and chief economist at Emirates NBD.
Turkey’s Ceyhan oil export terminal is scheduled to load its first cargo from Iraq’s Kurdish region since 2023 after a deal was reached last month to allow flows to resume, adding even more supply to the market.
Meanwhile, French President Emmanuel Macron said that detaining oil tankers can help put a stop to the shadow fleet that helps Russia skirt sanctions and export barrels around the world.
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With assistance from Rong Wei Neo.
This article was generated from an automated news agency feed without modifications to text.
