Oil Prices Fall Over 2% Ahead of Key OPEC+ Meeting on Output Hike

Oil prices dropped sharply on Wednesday, falling more than 2% by the close of trading, as investors braced for a crucial OPEC+ meeting early next week, where a potential increase in production targets is expected to be discussed.

Brent crude futures fell by $1.54, or 2.23%, to settle at $67.60 a barrel, while U.S. West Texas Intermediate (WTI) dropped $1.62, or 2.47%, to $63.97 a barrel at settlement.

Latest Oil Prices:

WTI Crude • 63.88 -1.71 -2.61%

Brent Crude • 67.49 -1.65 -2.39%

Murban Crude • 70.05 -1.92 -2.67%

Louisiana Light • 67.92 +1.23 +1.84%

Bonny Light • 78.62 -2.30 -2.84%

Mars US • 71.28 -0.98 -1.36%

Gasoline • 10 mins 2.009 -0.034 -1.68%

Natural Gas • 3.068 +0.059 +1.96%

The decline comes amid growing speculation that the oil-producing alliance, which accounts for roughly half of global supply, may move to gradually phase out existing production cuts and reclaim market share. Two sources told Reuters that eight OPEC+ member states will consider raising output targets in Sunday’s meeting.

Analysts, including Phil Flynn of Price Futures Group, noted that the market is increasingly pricing in the likelihood of an OPEC+ production hike. Such a move would signal the beginning of the group’s unwinding of the second tranche of cuts totaling 1.65 million barrels per day (bpd), equivalent to about 1.6% of global demand—well ahead of the original schedule.

The alliance had previously agreed to a 2.2 million bpd production increase between April and September 2025, including an additional 300,000 bpd allocation for the UAE. However, actual increases have lagged behind commitments due to capacity constraints and voluntary compensation cuts by certain members to offset past overproduction.

Adding further pressure to oil prices were weak economic indicators from the U.S., stoking concerns over future demand. The U.S. Labor Department reported a sharper-than-expected drop in job openings in July, down to 7.181 million from the forecasted 7.378 million. Additionally, manufacturing activity in the U.S. contracted for the sixth consecutive month, signaling persistent weakness in the industrial sector.