Oil steady at lowest level since May

Oil drilling rigs

Oil prices stabilized today, Oct. 21, after hitting their lowest levels since early May in the previous session, weighed down by concerns about oversupply as investors assessed the implications of the 20th consecutive day of the US government shutdown.

Brent crude was trading at $61 a barrel, at 08:28 am Makkah time. West Texas Intermediate (WTI) held at $56.99 a barrel.

Goldman Sachs analysts expect Brent crude prices to fall to around $52 per barrel during the fourth quarter of next year due to a global oversupply of crude oil, Reuters reported.

The American Petroleum Institute's report on US oil inventories is expected later today, before the official data from the US Energy Information Administration is released on Oct. 22.