Oil Prices Plummet to Four-Week Low as Supply Worries Mount

West Texas Intermediate (WTI) crude oil is experiencing a significant downturn, extending its slide for a fourth straight session and hitting a four-week low. The correction follows a surge to a near two-month high just last Friday. This renewed selloff has pushed WTI prices down sharply, with the commodity currently trading around the $61.67 mark, still down nearly 1.0% on the day despite a brief stabilization.

The latest catalyst for the price drop came from a bearish set of weekly data on U.S. stockpiles. Crude oil inventories unexpectedly rose by 1.79 million barrels last week, significantly exceeding the forecast increase and reversing the inventory draw seen in the previous period. This signal of softening demand or ample supply was amplified by increases across the board, with gasoline and distillate fuel stocks also climbing.

Adding to the bearish sentiment are ongoing concerns surrounding the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Earlier in the week, the market was rattled by reports suggesting the coalition might consider a substantial increase in output for November—potentially as high as 400,000 to 500,000 barrels per day. This possibility fueled fears of an oversupply at a time when global demand is still seen as fragile.

In response, OPEC+ officials quickly pushed back against the supply hike rumors, labeling them as “inaccurate and misleading.” Furthermore, the group’s Joint Ministerial Monitoring Committee (JMMC) emphasized the critical need for members to adhere to existing production quotas and urged those who overproduced previously to make up the difference in the coming months. All eyes are now focused on the upcoming OPEC+ online meeting scheduled for Sunday, where a key panel will review the current market landscape and finalize the production outlook for November.