Oil prices fell sharply in Asian trade on Monday as reports that OPEC+ will raise production again in November and the resumption of Kurdish oil exports to Turkey heightened concerns over a growing global supply glut.
As of 21:41 ET (01:41 GMT), Brent Oil Futures expiring in November fell 0.8% to $69.58 per barrel, while West Texas Intermediate (WTI) crude futures declined 0.9% to $65.16 per barrel.
Both benchmarks climbed nearly 5% last week, driven by rising concern over disruptions to Russian fuel exports after Ukrainian drone strikes on key energy infrastructure.
OPEC+ reportedly plans another hike in Nov
A Bloomberg report on Sunday stated that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) is expected to approve another production increase at its October meeting, part of the group’s push to reclaim global market share.
The Saudi Arabia-led group is expected to weigh boosting output by at least the 137,000 barrels per day already planned for October when it holds an online meeting on Oct. 5, the report said.
The move would add to a series of output hikes this year, reversing the deep cuts made in 2023 and 2024.
The International Energy Agency has already warned that OPEC+ policy could drive the market into a record surplus by 2026, as supply growth outpaces demand.
Iraq resumes Kurdish oil flows to Turkey
Adding to bearish sentiment, Iraq resumed crude exports from the semi-autonomous Kurdistan region to Turkey on Saturday, ending an over two-year suspension.
Initial flows were estimated at 180,000 to 190,000 barrels per day, with the potential to rise further in the coming months, according to a statement from the ministry.
The restart followed an interim agreement between Baghdad, the Kurdistan Regional Government, and foreign oil firms, breaking a deadlock that had stalled exports through the Kirkuk-Ceyhan pipeline since March 2023.
Source: Investing