Oil slumps 5.6% to lowest close since August

Oil drilling rigs

Oil deepened its losses today, Oct. 4, despite Saudi Arabia and Russia renewing their voluntary cuts until the end of this year. Oil inventories in Cushing, US, increased for the first time in eight weeks.

Brent crude futures for December delivery fell by 5.6%, or $5.11, to $85.81 per barrel. WTI crude for November delivery also lost 5.6%, or $5.01, to record $84.22 per barrel.

OPEC+ said in a statement following today's meeting that its Joint Ministerial Monitoring Committee reaffirmed the commitment of member states to maintain the production reduction strategy until the end of 2024.

Meanwhile, data from the US Energy Information Administration revealed that oil inventories decreased by 2.2 million barrels during the week ended Sept. 29, while expectations had indicated a decline of 446,000 barrels.

The USD reduced its losses amid fears of monetary tightening, as economic data showed growth in service activity in the US in September, for the ninth month in a row. Factory orders rose more than expected in August.