Oil settles lower amid weak demand concerns

Oil drilling rigs

Oil prices fell today, Oct. 1, amid concerns that an economic slowdown in the United States and Asia could weaken global demand for crude, as well as ongoing speculation about an OPEC+ production cut.

Brent crude futures for December delivery fell 1%, or 68 cents, to $65.35 a barrel, marking a third consecutive day of losses.

WTI crude futures for November delivery slipped 0.95%, or 59 cents, to $61.78 a barrel.

Data released today by the Energy Information Administration showed that US crude inventories rose by 1.8 million barrels last week, compared to expectations for a 300,000-barrel increase.

This data has raised concerns about fuel demand, exacerbated by the federal government shutdown this morning due to a funding shortage, threatening to disrupt the world's largest economy.

Meanwhile, S&P Global surveys revealed a contraction in manufacturing activity in most major Asian economies in September, raising concerns about fuel demand in the world's largest oil-consuming region.

OPEC denied in a statement Sept. 30 the reports that the OPEC+ alliance was discussing a 500,000 barrel-per-day production increase in November, but speculation about the matter persists and fuels concerns about a global crude supply glut.