Oil settles lower as OPEC+ plan adds to expectations of supply surplus
Oil prices settled lower on Tuesday as investors braced for a supply surplus due to potential OPEC+ plans for a larger output hike next month and the resumption of oil exports from Iraq’s Kurdistan region via Turkey.
Brent crude futures for November delivery, expiring on Tuesday, settled down 95 cents, or 1.4%, at $67.02 a barrel. The more active December contract settled at $66.03.
U.S. West Texas Intermediate crude settled at $62.37 a barrel, down $1.08, or 1.7%.
On Monday, Brent and WTI both settled more than 3% lower, their sharpest daily declines since August 1.
At its meeting next Sunday, OPEC+ may speed up production increases in November from the 137,000 barrels per day hike it made for October, as its leader Saudi Arabia pushes to regain market share, three sources familiar with the talks said.
Eight members of OPEC+ could agree to raise production in November by 274,000-411,000 bpd, or two or three times higher than the October increase, two of the three sources said. OPEC+ pumps about half of the world’s oil.
The increase could be as big as 500,000 bpd, one of the three sources said. Earlier on Tuesday, Bloomberg News reported that OPEC+ was considering accelerating its increases by 500,000 bpd.
OPEC in a post on X said it rejected media reports for plans to raise output by 500,000 bpd, calling them inaccurate and misleading.
Source : Reuters.com
