Oil Prices Predicted for Third Monthly Drop, OPEC+ Plans Supply Increase
Oil prices are on track for a third consecutive monthly decline, driven by concerns about a global oversupply, with OPEC+ expected to agree to another supply increase later this week. Brent crude fell near $64 per barrel, marking a monthly decline of more than 3%, while West Texas Intermediate (WTI) held near $60. The OPEC+ producer group is scheduled to meet on Sunday, where members are expected to agree to revive halted production to regain market share.
Traders are also assessing the impact of Western sanctions on Russia, including US restrictions on major producers like Rosneft PJSC and Lukoil PJSC. Several refineries in India have halted purchases of Russian crude for the coming months, seeking alternative sources. Despite a trade truce between the US and China, Brent prices have fallen 13% this year, as traders anticipate an oversupplied market, with the International Energy Agency warning of a record surplus by 2026.
At this weekend's OPEC+ meeting, the group is expected to agree to a modest increase of 137,000 barrels per day, part of an ongoing series of supply increases. While the coalition previously restored 2.2 million barrels per day ahead of schedule, this latest step will be more gradual. Brent crude for December delivery fell 0.5% to $64.70 per barrel, while WTI fell to $60.24, signaling continued pressure on oil prices. (asd)
Source: Newsmaker.id
