Oil settles lower on stronger dollar, fears of oversupply

Core Insights - Oil prices have settled lower due to weaker manufacturing data and a stronger dollar, with Brent crude futures down 0.7% to $64.44 per barrel and U.S. West Texas Intermediate crude down 0.8% to $60.56 [1] - The OPEC+ decision to pause output hikes 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] Industry Developments - TotalEnergies projects global oil demand to rise until 2040 before gradually declining due to energy security concerns and political coordination issues [5] - A Reuters survey indicated that OPEC's oil output increased in October, although the rate of increase has slowed significantly compared to previous months [6] - The impact of U.S. sanctions on Russian energy companies is diminishing, with expectations that sanctions on other trading companies will further affect market dynamics [6][7]