Oil slips on stronger dollar, oversupply fears

Oil Market Overview - Oil prices have decreased due to weaker manufacturing data and a stronger U.S. dollar, with Brent crude futures falling by 31 cents (0.5%) to $64.58 per barrel and U.S. West Texas Intermediate crude down by 33 cents (0.5%) to $60.72 [1] - The OPEC+ decision to pause output increases in the first quarter of next year indicates concerns about a potential supply glut [1][5] Economic Factors - The U.S. dollar reached a four-month high against the euro, raising doubts about further rate cuts by the Federal Reserve, which makes oil more expensive for holders of other currencies [3] - The ongoing U.S. government shutdown, now in its 35th day, is impacting various sectors, including food assistance and federal workers, which could lead to reduced domestic fuel demand [4] Regional Manufacturing Insights - Japan's manufacturing activity has contracted at the fastest rate in 19 months, primarily due to decreased demand in the automotive and semiconductor sectors [5] Market Sentiment and Future Outlook - The positive impact on oil prices from U.S. sanctions on Russian energy companies is diminishing, with expectations that sanctions set to take effect on November 21 may further affect market dynamics [6] - Market participants are anticipating U.S. inventory data, with expectations of an increase in crude oil stockpiles [6]