Oil prices slipped on Tuesday amid expectations of further production increases from OPEC+ and the restart of crude exports from Iraq’s Kurdistan region via Turkey, heightening worries over a potential supply glut.
Brent crude futures for November delivery, expiring on Tuesday, dropped 28 cents, or 0.4%, to $67.69 a barrel by 06:30 GMT. The December contract, which is more actively traded, declined 33 cents, or 0.5%, to $66.76 a barrel.
U.S. West Texas Intermediate (WTI) crude was down 29 cents, or 0.5%, at $63.16 a barrel. These declines followed Monday’s losses, when Brent and WTI both fell more than 3% in their largest daily drop since August 1.
The price retreat comes as Iraq’s Kurdistan region resumed crude shipments over the weekend, and reports suggest OPEC+ may approve an additional production increase for November at its upcoming meeting, IG analyst Tony Sycamore noted in a client briefing.
Three sources familiar with the discussions indicated that OPEC+—the coalition of the Organization of the Petroleum Exporting Countries and allies including Russia—is expected to greenlight a production boost of at least 137,000 barrels per day in its Sunday session.
“Although (OPEC+ is) under their quota anyway, the market still does not seem to like the fact that more oil is coming in,” Marex analyst Ed Meir said.
Meanwhile, crude began flowing on Saturday through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in two and a half years, following an interim deal that broke a long-standing deadlock, Iraq’s oil ministry reported.
Markets have been navigating a mix of supply risks, primarily stemming from Ukrainian drone attacks on Russian refineries, against concerns of oversupply and subdued demand.
Adding to bearish pressures, the looming risk of a U.S. government shutdown has fueled worries over energy demand, ANZ analysts noted in a Tuesday report. A shutdown could interrupt a wide range of government services and delay key economic data releases, including the Friday payrolls report, which is closely monitored by Federal Reserve policymakers.
Elsewhere on the geopolitical front, U.S. President Donald Trump secured Israeli Prime Minister Netanyahu’s support for a U.S.-backed Gaza peace initiative, though Hamas’s position remains uncertain.
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