FX.co ★ Oil Extend Losses to 4-Month Low

WTI crude oil futures fell by over 1%, reaching approximately $61 per barrel on Thursday— the lowest point in four months. This marks the fourth consecutive decline as market sentiment was impacted by supply concerns. The OPEC+ alliance is anticipated to approve a production increase of up to 500,000 barrels per day for November, tripling October’s increment, as Saudi Arabia aims to recapture market share. Indicators of oversupply are beginning to manifest, evidenced by rising US crude and gasoline inventories and the resumption of Iraqi Kurdish oil exports through Turkey's Ceyhan terminal following an agreement to restart shipments. Further contributing to the risk-averse sentiment is the ongoing US government shutdown, with the White House cautioning about potential widespread layoffs and no progress being made toward a resolution. Nonetheless, some support emerged from China's continued purchases for its strategic reserves.