FX.co ★ Oil Snaps 3-Day Gain

West Texas Intermediate (WTI) crude oil prices declined to $60.2 per barrel on Wednesday, ending three sessions of gains, due to expectations of an increasing global supply surplus. The OPEC+ coalition continues to bring back production capacity, with non-member countries also boosting their output, raising oversupply concerns. OPEC maintained its previous oil-demand forecasts, expecting growth of 1.3 million barrels per day this year and 1.38 million barrels per day next year, underpinned by steady global economic trends. In October, OPEC's output increased slightly to 28.46 million barrels per day, mainly driven by Saudi Arabia, Iraq, and Kuwait, while overall OPEC+ production saw a minor dip. The group anticipates modest production hikes until December, with plans to pause further increases in early 2025. Additionally, Saudi Arabia reduced its December crude prices for Asia, reflecting caution amid weakening demand. However, losses were somewhat offset by decreasing Russian supplies due to new US sanctions and optimism for stronger US demand as the risks of a government shutdown diminish.