Oil prices extended their slide to a third straight session, closing at fresh 16-week lows as a U.S. government shutdown heightened worries about global demand and traders braced for more supply from OPEC+.
Brent crude settled at $65.35, down 68¢ (-1.0%), the lowest close since June 5. U.S. West Texas Intermediate finished at $61.78, down 59¢ (-0.9%), its weakest since May 30.
The selling was driven by a mix of bearish forces: the shutdown in Washington raised fears of slower U.S. growth, EIA data showed a 1.8 million-barrel crude build versus expectations for a 1 million-barrel rise, and OPEC+ discussions pointed to a possible November output hike of up to 500,000 bpd. Though OPEC called such reports “misleading,” the group remains on track to raise production next month.
At the same time, refinery outages in Russia due to Ukrainian drone strikes freed up more crude for export, with September loadings from Russia’s western ports surging 25% from August. Venezuela, too, boosted exports to 1.09 million bpd, the highest since early 2020, adding to oversupply pressures.
Diamondback Energy’s CEO warned that U.S. shale growth will stall if prices stay near $60, underscoring the squeeze on high-cost producers. Meanwhile, U.S. gasoline futures hit their lowest in nearly a year, reinforcing demand concerns.