Oil prices declined during Tuesday’s trading amid expectations of a fresh increase in output from the OPEC+ alliance and the resumption of oil exports from Iraq’s Kurdistan region via Turkey, heightening concerns about a global supply glut.
Brent crude futures for November delivery fell by 54 cents, or 0.8%, while the more actively traded December contract dropped about 53 cents, also 0.8%. U.S. West Texas Intermediate crude slipped by 50 cents, or roughly 0.8%.
The decline extended Monday’s losses, when both Brent and WTI ended the session down more than 3%, marking their steepest daily drop since early August 2025.
Analysts noted that markets reacted to the restart of crude flows from Iraq’s Kurdistan region, following a two and a half year halt, after a temporary agreement was reached. This coincided with reports suggesting that OPEC+ is expected to agree on a production hike of no less than 137,000 barrels per day at its upcoming meeting, according to informed sources.
Although the alliance remains below its designated production quotas, expectations of increased supply have fueled investor concerns, particularly against the backdrop of signs of weakening global demand.
Additionally, the potential U.S. government shutdown cast a shadow over markets, with fears that it could affect the release of key economic data, such as the monthly jobs report, which is crucial for Federal Reserve policy decisions.
Markets continue to weigh the risks of supply shortages especially due to drone attacks on Russian refineries against the pressures stemming from rising supply and weaker global demand.
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