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Oil prices edged lower on Thursday, extending a run of declines into a fourth day due to concerns about oversupply in the market.
By Reuters October 2, 2025, 4:29:30 PM IST (Published)
Oil prices edged lower on Thursday, extending a run of declines into a fourth day due to concerns about oversupply in the market.
Brent crude futures fell 52 cents, or 0.8%, to $64.83 a barrel at 0953 GMT, hitting its lowest level since June.
U.S. West Texas Intermediate crude retreated by 52 cents, or 0.8%, to $61.26 a barrel.
A U.S. government shutdown increased uncertainty about global economic outlook, while expectations of higher output by OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, weighed on sentiment, said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
OPEC+ could agree to raise oil production by up to 500,000 barrels per day in November, triple the increase made for October, as Saudi Arabia seeks to reclaim market share, three sources familiar with the talks said.
Jorge Montepeque, managing director at Onyx Capital Group, said some banks, such as Macquarie, have put out predictions of a super glut in oil markets, which have weighed on sentiment.
The Group of Seven nations' finance ministers said on Wednesday they will take steps to increase pressure on Russia by targeting those who are continuing to boost purchases of Russian oil and those that are facilitating circumvention.
The US will provide Ukraine with intelligence for long-range missile strikes on Russian energy infrastructure, two officials told Reuters on Wednesday, confirming an earlier Wall Street Journal report.
This will make it easier for Ukraine to hit refineries, pipelines and other infrastructure with the aim of depriving the Kremlin of revenue and oil, the WSJ said.
"There is some concern in the market again that Russian oil could get disrupted," said Giovanni Staunovo, commodity analyst at UBS. But as long as there aren't disruptions yet, the impact on prices will likely be minor, he said.
Stockpiling demand from China, the world's largest crude oil importer, also underpinned oil prices, limiting the downside, traders said.
The Energy Information Administration said on Wednesday that U.S. crude oil, gasoline and distillate inventories rose last week as refining activity and demand softened.
Crude inventories rose by 1.8 million barrels to 416.5 million barrels in the week ended on September 26, compared with expectations in a Reuters poll for a 1-million-barrel rise.
