OPEC+ Production Threatens Oil Prices, Market Worries Oversupply
World oil prices weakened again following news that OPEC+ is considering increasing production starting in October. This decision is considered potentially increasing supply pressure in a global market already gripped by concerns about slowing demand.
According to a Reuters report, OPEC+ will meet next Sunday to review its production policy. Internal sources said the oil producer group is likely to accelerate the lifting of its 1.65 million barrels per day production cuts. If realized, this additional supply could increase the risk of oversupply in the global energy market.
This plan immediately impacted oil prices. Brent crude fell more than 1% to around US$67 per barrel, while West Texas Intermediate (WTI) also fell below US$63 per barrel. Bearish sentiment intensified after US crude stockpiles data showed an unexpected increase of 622,000 barrels in the latest weekly report.
In addition to supply factors, the price decline is also exacerbated by a less optimistic demand outlook. The economic slowdown in Europe and Asia, coupled with weak manufacturing data, is pressuring energy consumption projections for the second half of this year.
The combination of OPEC+'s planned production increase, surging US oil inventories, and the weak demand outlook are putting pressure on oil prices. Investors are now awaiting the outcome of the OPEC+ meeting this weekend as a determining factor in the short-term direction of prices.
Source: Newsmaker.id
