Global Crude Oil Prices Decline, Potential OPEC+ Production Increase Impacts Market

Staff Reporter | PNN

The price of crude oil in the global market has started to decline. According to a Reuters report, Brent crude oil fell by 0.7% to $67.14 per barrel, while the price of West Texas Intermediate (WTI) crude in the United States also dropped by the same rate to $63.50 per barrel.

Analysts believe the main reason for the price drop is the potential increase in production by OPEC+ member countries. The OPEC+ meeting is scheduled for September 7, where discussions may take place regarding increasing oil production in October. This could lead to a further surplus in the market, especially when demand remains relatively low.

From April to September, OPEC+ has increased daily production by approximately 2.2 million barrels and allowed the United Arab Emirates an additional 300,000 barrels of production. Analysts say this move is primarily aimed at maintaining market partnership stability.

Meanwhile, U.S. crude oil inventories have also risen. According to the American Petroleum Institute, stocks increased by 622,000 barrels in the week ending August 29, adding pressure to the market.

Analysts further note that if Brent crude prices fall to the $60–65 range, the economic sustainability of U.S. oil production could face risks.