Oil prices dip on OPEC+ hike speculation; US inventories seen rising
Oil prices fell in early Asian trade on Thursday, extending losses from the prior session after reports suggested that the OPEC+ was considering another output hike at an upcoming meeting.
Markets were also pressured by industry data pointing to a weekly increase in U.S. oil inventories, which furthered concerns over a post-summer cooldown in American fuel demand.
Brent oil futures for November fell 0.4% to $67.35 a barrel, while West Texas Intermediate crude futures fell 0.4% to $63.30 a barrel by 20:35 ET (00:35 GMT).
OPEC+ to consider another production hike at upcoming meeting- Reuters
Reuters reported on Wednesday that the Organization of Petroleum Exporting Countries and allies, known as OPEC+, will consider raising oil production further when it meets on Sunday.
The report offset earlier bets that the OPEC+ would keep output unchanged after hiking production by over 2.2 million barrels per day this year.
This year’s output hikes partially reversed deep production cuts enacted by the OPEC+ in the past two years, as it sought to limit supplies and support oil prices. Additional output hikes will further reverse earlier production cuts.
Higher output quotas come as the OPEC+ seeks to recapture market share, with higher sales volumes expected to help offset persistent weakness in oil prices.
Still, actual output increases from OPEC+ members have fallen short of the group’s pledges, amid some dissent among its ranks.
But higher production points to well-supplied markets in the coming months, which likely bodes poorly for oil prices.
Source: Investing.com
