DTN Oil Update
WTI Falls to $60 on Anticipation of OPEC Output Boost
SECAUCUS, N.J. (DTN) -- Oil futures fell for a third straight day on Tuesday, Oct. 28, driven by concerns that OPEC may agree to boost crude production at its weekend meeting.
Meanwhile, energy traders overlooked an anticipated interest rate cut by the U.S. Federal Reserve on Wednesday, Oct. 29, to focus instead on a report on U.S. oil inventories for last week, due today from the American Petroleum Institute at 4:30 p.m. EDT.
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The NYMEX WTI contract for December delivery settled down $1.16 at $60.15 bbl. ICE Brent for December delivery slid $1.26 to $64.36 bbl.
Front-month ULSD futures slumped $0.0506 to $2.3855 gallon.
November RBOB gasoline futures bucked the lower trend, rising $0.0025 to $1.9229 gallon.
The U.S. Dollar Index was little changed, rising 0.098 points to 98.465 against a basket of foreign currencies.
Bloomberg reported that eight of 12 key members of the Organization of the Petroleum Exporting Countries are expected to reach an agreement during their Nov. 2 meeting to raise their combined production by 137,000 bpd starting in December. The increase is part of a planned hike of 1.66 million bpd to reclaim OPEC's lost market share, according to the report.
Despite the U.S. Treasury Department had recently sanctioned Russian energy firms Rosneft and Lukoil, some oil traders believe Russian crude may continue reaching the marketplace through shadow fleets operating beneath U.S. enforcers' radar.
Growth in global oil supply has outpaced demand, with the International Energy Agency projecting a record 4 million bbl glut in 2026.
On Tuesday, Saudi Aramco CEO Amin Nasser told a conference in Riyadh that world oil demand was expected to grow by 1.1 to 1.4 million bpd next year, with 80% of the buying coming from developing countries.