Oil market ends October on a soft note – London Business News | London Wallet

Crude oil prices are trading lower as October concludes, extending a three-month losing streak with WTI crude hovering around USD 60 per barrel.

The market could remain exposed to demand concerns.

In this regard, Chinese manufacturing PMI contributed to the concerns as it fell to 49.0 in October, lower than expected, and marked a seventh consecutive month of contraction.

At the same time, oversupply concerns continue to weigh on sentiment. US output recently hit a record 13.6 million bpd, contributing to a potential glut. All eyes are now on the upcoming OPEC+ meeting scheduled for this Sunday. The organization is already unwinding earlier voluntary cuts and is expected to approve another gradual production hike, restoring more barrels to the market and capping potential price rallies.

However, US fundamentals have offered some support. The EIA reported a larger-than-expected 6.9 million-barrel draw in crude inventories for the week ending October 24.

This, alongside declines in refined products, left US crude stocks roughly 6% below the five-year seasonal average, signalling robust near-term demand.