Oil prices drop 3% as OPEC+ plans for oil output hike
Oil prices settled 3% lower on Monday as OPEC+ plans for another increase to oil output in November and the resumption of oil exports by Iraq’s Kurdistan region via Turkey raised the global supply outlook.
Brent crude futures dropped $2.16, or 3.1%, to close at $67.97 a barrel by 11:33 a.m. ET (1533 GMT) after settling at their highest since July 31 on Friday. U.S. West Texas Intermediate crude was down $2.27, or 3.45%, at $63.45.
OPEC+, the Organization of the Petroleum Exporting Countries and allied producers, meets on Sunday and is likely to confirm a production boost of at least 137,000 barrels per day for November to gain market share, said three sources.
OPEC+ has been pumping almost 500,000 bpd less than its targets.
Crude oil flowed through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey on Saturday for the first time in 2-1/2 years, Iraq’s oil ministry said.
Crude oil flows from Kurdistan to Turkey’s Ceyhan port are running at 150,000-160,000 bpd, two industry sources told Reuters.
The resumption is expected eventually to bring up to 230,000 bpd of crude back to international markets.
Last week, prices for both crude benchmarks gained more than 4% after Ukrainian drone attacks on Russian energy infrastructure dented the country’s fuel exports.
Source : Reuters.com
