Crude oil prices slid to their weakest levels since June, with Brent and West Texas Intermediate (WTI) both trading lower on Wednesday amid signs of oversupply and faltering demand in Asia.
At 12:33 p.m. ET, Brent crude traded at $67.51 per barrel, down 0.97%, while WTI stood at $62.21, down 0.26%.
The drop follows OPEC+’s decision to proceed with a measured output increase, despite media speculation of larger hikes. The group reaffirmed its “calibrated” approach, but the additional supply has weighed on already fragile markets.
Further pressure came from Kurdistan’s resumption of exports to Turkey’s Ceyhan terminal, estimated at 180,000–230,000 barrels per day, adding barrels back to global flows.
Weak demand signals in Asia amplified concerns. Japan’s manufacturing sector contracted to a six-month low in September, while China’s factories shrank for the sixth straight month. Export-driven economies across the region are grappling with softer orders and tepid domestic demand, curbing fuel consumption.
In the United States, the ongoing government shutdown added uncertainty. Analysts warn furloughs at critical agencies could disrupt key data releases, increasing market volatility.
“Oil prices are under pressure in anticipation of OPEC+ restoring additional quantities of oil back to the market, along with the resumption of Kurdish exports,” said Andrew Lipow, president of Lipow Oil Associates.
StoneX analyst Alex Hodes noted that the renewed supply burden could “squeeze margins for high-cost U.S. shale producers.” Diamondback Energy CEO Kaes Van’t Hof added that if prices linger near $60, U.S. output growth could stall, as fewer Tier-1 drilling zones remain viable.