Oil prices experienced a notable decline of 2% on Wednesday, as market focus shifts to the upcoming OPEC+ meeting scheduled for this weekend. Traders anticipate that the group may consider further increasing oil output from October by tapping into the last remaining production cuts. As of early morning Eastern Time, West Texas Intermediate (WTI) crude was priced at $64.34, reflecting a 2% decrease, while the international benchmark, Brent Crude, fell by 1.76% to $68.02.
The eight OPEC+ producers that have been gradually unwinding production cuts over recent months will convene on Sunday, September 7, to deliberate on an additional increase in oil production for October. According to two sources familiar with the discussions, no definitive decision regarding production levels has been reached as of now. The group had previously agreed in early August to raise output by 547,000 barrels per day (bpd) for September, a move that would complete the rollback of the 2.2 million bpd cuts initiated earlier.
OPEC+ currently has one remaining layer of production cuts totaling 1.66 million bpd, which are set to remain in effect until the end of 2026, unless the alliance opts to revise them. Should the OPEC+ producers decide to lift these last cuts, it would signal a shift toward prioritizing market share over price stabilization. Since beginning to unwind production cuts in April, oil prices have remained subdued, although they are now approximately $10 per barrel higher than the lowest price recorded in 2025, which was $58 per barrel in April.
The implications of OPEC’s production decisions extend beyond international markets. Lower crude prices, while aligned with U.S. President Donald Trump‘s push for reduced oil and energy costs, pose potential risks to budgetary stability and may lead to a decline in drilling activity within the U.S. shale sector.
As the OPEC+ meeting approaches, analysts and traders alike will be closely monitoring the outcomes, which could significantly impact global oil prices and production strategies in the coming months. As the energy market remains volatile, the decisions made during this meeting could reverberate beyond the oil markets, affecting economies worldwide.
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