Oil Prices Extend Decline Ahead of Key OPEC Meeting

Highlights:

• Brent crude fell 0.7% to US$67.14 and WTI slipped 0.7% to US$63.50 at the time of writing, extending the previous session’s losses.
• OPEC+ members will meet this weekend to discuss potential further production hikes aimed at regaining global market share.
• The talks follow an earlier decision to lift output by 2.2 million bpd from April to September, plus an additional 300,000 bpd for the UAE.

Market Weakness Continues

Oil prices slipped further on Thursday, adding to a fall of more than 2% in the previous session, as markets looked ahead to a weekend meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). OPEC+ is likely to consider further output hikes as part of its broader plan to reassert influence over global supply. At the time of writing, Brent crude eased 0.7% to US$67.14 per barrel, while U.S. West Texas Intermediate (WTI) also slipped 0.7% to US$63.50, a drop of 47 cents.

OPEC+ to Review Output Levels

According to sources familiar with the discussions, eight members of OPEC+ will evaluate production increases for October at Sunday’s meeting. These talks come on the back of a prior deal in which the alliance committed to lifting output by about 2.2 million barrels per day (bpd) from April through September, along with a separate 300,000 bpd quota rise for the UAE. Analysts suggest the move reflects the bloc’s determination to strengthen its foothold in the global energy market, despite recent volatility in crude prices.

Middle Eastern Crude Remains Strong

Interestingly, Middle Eastern oil has continued to command the strongest regional prices globally, despite rising production. A report by Haitong Securities noted that this resilience has reinforced confidence among Saudi Arabia and other OPEC members to pursue more aggressive supply strategies.

Outlook

Investors remain cautious as the OPEC+ meeting approaches, with expectations of further supply expansions adding downward pressure on prices. Still, the sustained strength of Middle Eastern benchmarks could provide a buffer, suggesting that OPEC+ producers are entering negotiations from a position of relative confidence.

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