Crude Prices Retreat with Global Supplies Set to Increase

Core Insights - Crude oil and gasoline prices are experiencing a significant selloff, with crude reaching a 4-month low and gasoline a 10.5-month low due to concerns over a global supply glut and rising inventories [2][3]. Group 1: Price Movements - November WTI crude oil closed down by $0.59 (-0.95%) and November RBOB gasoline closed down by $0.0364 (-1.89%) [1]. - Crude prices are under pressure from an anticipated increase in OPEC+ production levels, which is expected to reverse a two-year production cut and restore a total of 2.2 million barrels per day (bpd) [3]. Group 2: Supply Dynamics - OPEC+ is expected to discuss fast-tracking supply hikes of approximately 500,000 bpd in three monthly installments starting in November [3]. - The International Energy Agency (IEA) projects a record global oil surplus of 3.33 million bpd next year, which is 360,000 bpd higher than previous estimates [4]. - Iraq's resumption of oil exports from the Kurdish region could add 500,000 bpd to global supplies, further contributing to the bearish outlook for crude prices [5]. Group 3: Demand Factors - Reduced crude demand from India, the world's third-largest crude oil importer, is negatively impacting oil prices, with August crude imports falling by 2.9% year-on-year to 19.6 million metric tons [6].