Oil prices dipped by 2% as the market anticipates the OPEC+ meeting this weekend, where the group may decide to further increase oil output from October.
The eight OPEC+ producers are considering another increase in oil production for October, with a decision expected at the September 7 meeting.
If OPEC+ taps the remaining 1.66 million bpd production cuts, it would signal a return to chasing market share, which could keep oil prices subdued.
Oil prices slumped by 2% early on Wednesday as the market turns its attention to this weekend’s OPEC+ meeting, at which the group may decide to tap the last remaining production cuts and raise output from October even further.
In the early morning ET on Wednesday, WTI Crude prices were down by 2% at $64.34, while the international benchmark, Brent Crude, was down 1.76% at $68.02.
The eight OPEC+ producers that have been unwinding production cuts for several months now will discuss another increase in the oil production for October when they meet on Sunday, two sources with knowledge of the plans told Reuters on Wednesday.
The regular OPEC+ meeting on September 7 will also consider keeping production flat in October compared to September, the sources said, adding that no final decision on production levels has been made yet.
The OPEC+ alliance agreed in early August to boost output by 547,000 barrels per day (bpd) in September, the hike that would complete the rollback of the 2.2 million bpd cuts.
OPEC+ has one last remaining layer of production cuts of 1.66 million bpd, which are currently in force until the end of 2026, unless the group decides otherwise.
If the OPEC+ producers tap these last 1.66 million bpd cuts, it would be another signal that they are back to chasing market share.
OPEC+ began unwinding the cuts in April, which has kept oil prices subdued for most of the past several months. Amid geopolitical concerns and peak summer demand, oil is now about $10 per barrel higher than the lowest level of 2025 so far, the $58 a barrel handle reached in April.
While OPEC’s production increases are helping the narrative of U.S. President Donald Trump’s desire for low oil and energy prices, lower crude prices are threatening budget cuts and declines in drilling activity in the U.S. shale patch.
By Tsvetana Paraskova for Oilprice.com
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