WTI rises above $60.50, upside seems limited due to OPEC+ oversupply concerns

• WTI price rebounded from five-month low of $60.22 recorded on Thursday.
• OPEC+ could lift production by as much as 500,000 barrels per day in November, tripling October's hike.
• Crude Oil prices fell as US crude Oil inventories rose last week as refining activity and demand weakened.

West Texas Intermediate (WTI) Oil prices halts its four-day losing streak, rebounding from five-month low of $60.22 recorded on Thursday, trading around $60.70 per barrel during the Asian hours on Friday. However, crude Oil prices are on track for their third successive weekly decline amid market expectations of production increase by the Organization of the Petroleum Exporting Countries and allies, including Russia, known as OPEC+.

Reports suggested the OPEC+ may raise output by up to 500,000 barrels per day in November, tripling October's increase, as Saudi Arabia seeks to reclaim market share. Reuters cited Tony Sycamore, IG analyst, saying "If OPEC+ do go ahead and announce a 500,000 bpd increase this weekend, it's likely a big enough increase to send crude oil lower again, initially to support at $58.00, before a test of this year's lows $55.00 area."

Oil prices also faces challenged as Iraq's Kurdistan region resumed exports following a 2.5-year halt, adding supply to a market facing surplus risks. Under a new deal with Baghdad, the Kurdistan Regional Government, and international Oil firms will initially transport 180,000-190,000 barrels per day (bpd) to Turkey's Ceyhan port.

The Energy Information Administration (EIA) noted on Wednesday that United States (US) crude Oil, gasoline and distillate inventories gained last week as refining activity and demand softened. EIA Crude Oil stockpiles reported 1.792 million barrels stockpiles in the previous week, exceeding the market expectations of 1.5 million barrels.

The Oil demand will likely be affected due to concerns that a government shutdown will curtail economic activity in the United States, the world largest oil consumer. The shutdown is expected to extend until next week. Senate Democrats are poised to vote against a GOP-backed short-term funding bill again tomorrow, and the Senate is unlikely to meet this weekend.