Oil rebounds from lowest level since August

Oil drilling rigs

Oil rebounded today, Oct. 5, after sinking to its lowest level since August during the previous session. The uptick came as markets evaluated the latest inventory data in the US and OPEC+ said it would maintain its output cut policy.

International benchmark Brent crude was trading up 0.64% at $86.36 a barrel, at 08:09 am Makkah time.

West Texas Intermediate (WTI) crude rose 0.53% to $84.67 a barrel, after closing the previous session down by 5.6%.

OPEC+ said in a statement that its Joint Ministerial Monitoring Committee reaffirmed the commitment of the 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.

Charu Chanana, Market Analyst at Saxo Capital, said in a statement to Bloomberg that the markets are focussing on the decline in demand for oil rather than the decline in supply. Oil prices could witness some rise during the fourth quarter due to expectations of a supply deficit, but may decline in 2024 on recession fears.