OPEC+ reaches an agreement in principle to increase production
OPEC+ sources said Saturday that OPEC+ is likely to increase oil production at its meeting on Sunday, but October will see less oil increases than in recent months as global demand slows with the end of the driving season.
Brent crude futures closed down $1.49, or 2.22%, at $65.50 a barrel. WTI crude fell $1.61, or 2.54%, to $61.87.
OPEC+ reversed its production cut strategy, which it had implemented since April, and increased quotas by about 2.5 million barrels per day, or about 2.4% of world demand, to increase market share under pressure from Trump to lower oil prices.
However, these increases have not significantly impacted oil prices, which are trading around $66 per barrel due to Western sanctions against Russia and Iran, spurring production increases in rival countries like the United States.
Another production increase means that OPEC+, which produces about half the world's oil, will begin reversing a second cut of approximately 1.65 million bpd, more than a year earlier than planned.
OPEC+ will hold an online meeting on Sunday at 12:30 GMT. The discussions are focused on reversing the entire cut in gradual monthly increments.
At their last meeting in August, OPEC+ increased production for September by 547,000 bpd.
OPEC+'s production increases fell short of commitments, with most members producing close to capacity. Data shows that only Saudi Arabia and the United Arab Emirates are expected to add more barrels to the market.
OPEC still has two phases of cuts: a 1.65 million bpd cut by eight members and a 2 million bpd cut by the entire group by the end of 2026.
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