Oil Prices Slip Further as OPEC Confirms September Production Boost

Highlights:

• Brent crude fell 0.57% to US$69.27 per barrel (at the time of writing) as OPEC+ confirmed a 547,000 bpd production increase for September, aiming to reclaim global market share.
• The latest hike reverses OPEC+’s largest supply cuts earlier than planned, with total additions, including the UAE allocation, amounting to 2.5 million bpd or 2.4% of global demand.
• Despite the announced increase, Goldman Sachs estimates actual supply growth will be closer to 1.7 million bpd, as some OPEC+ members reduce output to offset previous overproduction.

Oil prices continued their downward trajectory on Monday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) confirmed a substantial production increase for September. At the time of writing, Brent crude futures are trading at US$69.27 per barrel, down 0.57%, while U.S. West Texas Intermediate (WTI) crude is at US$66.96, a decline of 0.55%.

OPEC+ Accelerates Output to Regain Market Share

OPEC+ announced on Sunday it would raise production by 547,000 barrels per day (bpd) in September, accelerating its efforts to reclaim global market share. The decision, which was widely anticipated by the market, comes as the group cites a robust global economy and low oil inventories as justifications for increasing output. This latest hike marks a complete and earlier-than-planned reversal of the group’s largest supply cuts, including a special allocation to the United Arab Emirates. The total production increase equates to approximately 2.5 million bpd, or 2.4% of global oil demand.

Demand Concerns Weigh Amid U.S. Economic Slowdown

Despite the coordinated effort to boost supply, oil markets remain pressured by concerns over weakening demand, particularly in the United States—the world’s largest oil consumer. Worries over a potential economic slowdown are prompting traders to reassess the demand outlook, overshadowing

OPEC+’s supply optimism. Analysts at Goldman Sachs Group Inc. (NYSE: GS) project that the actual increase in supply from the eight OPEC+ members actively raising output since March will amount to just 1.7 million bpd. This is roughly two-thirds of the announced hike, as several producers have reduced output to compensate for previous overproduction.

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