Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Oil prices steadied in Asian trade on Thursday, recovering slightly after sliding to near four-month lows in the previous session as rising U.S. crude inventories and speculation of another OPEC+ supply hike weighed heavily on sentiment.
Market Performance
As of 21:52 ET (01:52 GMT), Brent crude futures (December delivery) rose 0.5% to $65.67 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.5% to $62.09 per barrel. Both benchmarks have shed nearly 7% so far this week, pressured by growing concerns of a supply glut and broader fears about slowing global economic growth.
EIA Data: Inventories Rise Above Expectations
The latest U.S. Energy Information Administration (EIA) data revealed a 1.8 million-barrel build in crude stocks last week, surpassing expectations for a 1.5 million-barrel increase. The rise marked the first inventory gain in three weeks, suggesting softer refining activity and weaker demand.
- Gasoline inventories increased by 300,000 barrels to 228.7 million.
- Distillate stocks climbed 600,000 barrels to 120.9 million.
The figures added selling pressure to an already fragile market, with traders viewing them as confirmation of slowing demand trends.
OPEC+ Eyes Further Production Hike
Supply-side concerns also dominated sentiment, with reports that OPEC+ may raise output again in November. The group has already agreed to add 137,000 barrels per day in October, but discussions at its upcoming October 5 meeting could include a larger increase of up to 500,000 barrels per day.
If confirmed, the move would mark another step away from the deep production cuts enacted in 2023–2024, as the alliance seeks to defend market share. Analysts warn the policy shift risks tipping markets further into oversupply.
US Government Shutdown Adds Pressure
The newly initiated U.S. government shutdown has compounded pressure on crude markets. With Congress failing to pass a funding bill, traders worry about delayed release of critical U.S. economic data such as nonfarm payrolls and inflation, leaving investors without key demand signals.
The broader political impasse has also dented risk appetite in financial markets, further weighing on commodities tied to growth.
