DTN Oil Update
Oil Steadies Near 4-Month Low, Eyeing Sizable Weekly Loss
VIENNA (DTN) -- Oil prices steadied after a four-day selloff pressured mainly by oversupply concerns that took them to their lowest since early June.
As of Friday morning, Oct. 3, oil futures were on track for their largest weekly loss in 13 weeks, having slipped about 8%.
NYMEX-traded WTI crude for November delivery rose $0.23 to $60.71 bbl, and ICE Brent for December delivery inched up $0.24 to $64.35 bbl.
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Among oil products, November RBOB gasoline futures gained $0.0120 to $1.8630 gallon. Distillates bucked the trend, with the front-month ULSD contract extending the drop from the prior session, sliding $0.0057 to $2.2378 gallon.
The U.S. Dollar Index softened 0.035 points to 97.505 against a basket of foreign currencies.
Oil's price plunge was sparked by new barrels hitting a market already looking to be oversupplied in short order and the prospect of a larger glut over the coming months.
The week started with reports of OPEC delegates considering further output hikes at their next meeting this Sunday, Oct. 5.
That was after some 180,000 bpd of crude from northern Iraq returned to the export market after a 2-1/2-year long hiatus.
A series of lackluster macroeconomic indicators released this week added to oversupply concerns, just as bearish sentiment widened from the first shutdown of the U.S. federal government in more than six years.
Market participants are awaiting next for the outcome of Sunday's meeting between eight of the largest oil producing nations in OPEC+, which will be convening virtually to set production policy for November.
Expectations of a larger output hike than in October are priced in for now, meaning a smaller-than-anticipated quota increase could ease some of the bearish pressure, at least in the short run.