DTN Oil Update
Oil Edges Lower Amid Weak Demand Signals, US Shutdown
VIENNA (DTN) -- Oil prices fell for a third straight trading day, entering the third quarter on the same weak note that they finished the second, as sluggish macroeconomic data, a U.S. government shutdown and prospects of an OPEC supply hike throttled sentiment.
On Wednesday, Oct. 1, morning trade, NYMEX-traded WTI crude for November delivery fell $0.38 to $61.99 bbl, and ICE Brent for December delivery retreated $0.40 to $65.63 bbl.
Among oil products, November RBOB gasoline futures slid $0.0212 to $1.9011 gallon, and the front-month ULSD contract softened $0.0028 to $2.3213 gallon.
The U.S. Dollar Index remained unchanged at 97.450 against a basket of foreign currencies.
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East Asian manufacturing PMIs released this week showed the region's industrial sectors stagnating, with the indices for September hovering close to the 50-point mark. That appeared to defy oil bulls' bet this year that China will be among countries to spearhead growth in global oil demand.
Adding to the dour outlook was U.S. consumer confidence, which slipped to a three-month low in September, as a key index monitored by the Conference Board slid 3.6 points to 94.2 from a revised 97.8 in August.
In the United States, an industry report ahead of a weekly government reading on oil stockpiles showed that while crude oil inventories shrank last week, stocks of gasoline and distillate fuel oil expanded.
Demand woes have added to the oversupply concerns in oil ahead of an OPEC+ meeting on Sunday, Oct. 5, which is likely to result in further production hikes.
The speed with which 23-member OPEC+ has returned barrels to the market so far this year has confounded analysts already expecting further inventory growth in the fourth quarter and throughout 2026.
The American Petroleum Institute on Tuesday, Sept. 30, reported that commercial crude oil inventories have fallen by 3.67 million bbl last week, marking the third consecutive weekly decline.
Nationwide gasoline and distillate fuel oil stocks, in contrast, expanded by 1.3 million bbl and 3 million bbl, respectively.
Official government oil inventory data from the U.S. Energy Information Administration is scheduled for 10:30 a.m. EDT release today.
The kickoff of the U.S. federal government shutdown added to concerns over slowing demand growth, exacerbating the bearish sentiment.
The shutdown may also delay macroeconomic data releases scheduled for this week, such as weekly jobless claims on Thursday and the U.S. Bureau of Labor Statistics' September payroll report on Friday.
The EIA said in a separate statement that it will be able to operate for a period of time during the shutdown.