Oil Prices Slide 1% as OPEC+ Prepares to Discuss New Output Increase
Oil prices dropped by 1% on Thursday, adding to the previous session’s 2% decline. Traders are closely watching the upcoming OPEC+ meeting this weekend, where producers are expected to consider another output hike.
By 06:41 GMT, Brent crude slipped 62 cents, or 1%, to $66.96 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 64 cents, or 1%, to $63.33.
According to Reuters, eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are set to discuss raising production in October during Sunday’s meeting. The move comes as the group aims to recapture market share after months of coordinated supply adjustments.
Energy analyst Suvro Sarkar from DBS Bank noted that oil markets have so far absorbed recent supply increases during the third quarter. However, he warned that inventory build-ups in the winter could weigh heavily on prices. Sarkar expects Brent crude to trade between $60 and $65 per barrel in the near to medium term, especially with limited positive drivers on the horizon.
OPEC+ has already committed to raising output by about 2.2 million barrels per day between April and September, alongside an additional 300,000 bpd quota increase for the United Arab Emirates. Despite these boosts, Middle Eastern crude has maintained its status as the strongest regional benchmark worldwide, strengthening Saudi Arabia’s and other OPEC members’ confidence in lifting production further, according to Haitong Securities.
Adding more pressure to oil prices were weak U.S. macroeconomic indicators that cast doubt on demand from the world’s largest oil consumer. OANDA senior market analyst Kelvin Wong highlighted that recent declines in U.S. job openings, particularly in healthcare, point to weaker labor market conditions. This trend could slow overall economic momentum and reduce energy demand.
Markets are also awaiting the latest U.S. crude inventory data. Industry sources revealed on Wednesday that American Petroleum Institute (API) figures showed a 622,000-barrel build for the week ending August 29. This estimate contrasts with expectations from Reuters-polled analysts, who forecast a 2 million-barrel drawdown. Official government data from the Energy Information Administration (EIA) is due later on Thursday.
