Crude oil prices fell to their weakest levels since June on Wednesday, as new supply from OPEC+ and Kurdistan hit a market already struggling with weak demand in Asia.
Brent crude dropped 0.97% to $67.51 per barrel at 12:33 p.m. ET, while US West Texas Intermediate (WTI) slipped 0.26% to $62.21. Both benchmarks have now erased much of their summer gains.
OPEC+ confirmed it will stick to a gradual increase in output, rejecting speculation of a larger supply surge. But the move still adds barrels to a fragile market.
“Oil prices are under pressure in anticipation of OPEC+ restoring additional quantities of oil to the market, along with the resumption of Kurdish exports,” said Andrew Lipow, president of Lipow Oil Associates.
Kurdistan resumed exports to Turkey’s Ceyhan terminal this week, with shipments estimated between 180,000 and 230,000 barrels per day. This return comes as Asia’s demand slows. Japan’s factory sector shrank to a six-month low in September, while China’s industrial activity contracted for the sixth month in a row.
“The renewed supply burden could squeeze margins for high-cost U.S. shale producers,” warned StoneX analyst Alex Hodes.
Adding to the uncertainty, a U.S. government shutdown threatens to disrupt energy data releases, key tools for traders. Diamondback Energy CEO Kaes Van‘t Hof said crude near $60 could stall U.S. output growth, warning that “fewer Tier-1 drilling zones remain viable at lower prices.”
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