FX.co ★ Oil Lingers Near Four-Month Low

West Texas Intermediate (WTI) crude oil futures experienced a modest increase, reaching approximately $62 per barrel on Thursday. Despite this rise, prices remained near a four-month low due to anticipated increases in OPEC+ supply amid prevailing uncertainties. OPEC+ plans to convene this weekend, fueling speculation that they may decide to boost output beyond current plans, although the group has dismissed these claims. Concerns about oversupply were exacerbated by a 1.8 million barrel increase in U.S. crude inventories, accompanied by rises in gasoline and distillate stocks, while gasoline demand declined to a six-month low, heightening apprehensions about near-term consumption. In Asia, factory activity saw a contraction across major economies in September, further exacerbating worries regarding regional fuel demand. Compounding these issues, the U.S. government shutdown on Wednesday, after lawmakers were unable to finalize a funding agreement, delaying crucial economic data releases and increasing anxiety about the global economy, thereby putting additional downward pressure on oil prices.