Oil Prices Sinks Prior to OPEC+ Panel

Oil fell slightly on Oct 4 ahead of an OPEC+ ministerial meeting, as the market weighed supply tightness predictions against fears that high-interest rates would restrict fuel demand. Brent crude oil futures slid 6 cents to $90.86 per barrel by 0345 GMT, while WTI crude in the United States fell 5 cents to $89.18 per barrel.

On Oct 3 night, data showed that job postings in the United States climbed by the most in more than two years, sparking a further strong rise in Treasury yields. The benchmarks have been pushed by expectations that the strengthening dollar will affect demand by making oil more expensive for holders of foreign currencies, in addition to fears that interest rates will remain high for some time.

“A resilient labour market is deemed to be providing more room for the Federal Reserve (Fed) to keep rates high for longer,” said Yeap Jun Rong, market analyst at IG.

The Organization of the Petroleum Exporting Countries and Allies, or OPEC+, is expected to keep output policy unchanged on Oct 4, after members Saudi Arabia and Russia extended output cuts to the end of the year. According to a Reuters poll, Saudi Arabia is projected to hike its November official selling price of Arab Light oil to Asia for the fifth consecutive month, as market participants expect medium sour crude supplies to remain tight.

"The recent oil price reversal could be a reason for the cartel to keep their supply cuts unchanged in today's review meeting," ANZ Bank analysts Brian Martin and Daniel Hynes wrote in a report.

Meanwhile, efforts to restore Iraqi oil exports via a crude oil pipeline that runs via Turkey are still ongoing, according to an Iraqi oil official, one day after Turkey declared operations will resume this week after a nearly six-month halt.