Oil prices slipped in early Asian trading Thursday, following losses from the previous session, amid reports that OPEC+ may consider another production increase at its upcoming meeting.
The market was also pressured by industry data pointing to a weekly rise in U.S. crude inventories, reinforcing concerns of a post-summer slowdown in American fuel demand. Brent crude for November delivery traded down 0.4% at $67.35 a barrel, while West Texas Intermediate fell 0.4% to $63.30 a barrel by 20:35 ET (00:35 GMT).
OPEC+ Output Concerns
Reuters reported that OPEC+—the Organization of Petroleum Exporting Countries and its allies—will review a potential output hike when it meets Sunday. This report countered earlier expectations that production levels would remain steady after the group raised output by over 2.2 million barrels per day so far this year.
The hikes partially reversed previous cuts designed to tighten supply and support prices. Any additional increases would further unwind these cuts, reflecting OPEC+’s strategy to reclaim market share and boost sales volumes amid persistent price weakness. Still, actual production from some members has lagged pledges due to internal disagreements, leaving global markets well-supplied—a factor likely to pressure prices.
U.S. Inventory Data
The American Petroleum Institute reported U.S. crude stockpiles rose by 0.6 million barrels in the week ending August 29, defying expectations for a 3.4 million-barrel draw. This data often foreshadows the official inventory report from the Energy Information Administration, due later Thursday.
Market watchers are also eyeing U.S. nonfarm payrolls on Friday for signs on economic momentum and interest rate trends, as softer economic readings can dampen oil demand. Earlier in the week, PMI data indicated that U.S. manufacturing activity contracted for the sixth month in a row.
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