Oil Prices Slide as OPEC+ Eyes Production Hike and Iraq Resumes Exports

Oil prices fell on Tuesday as renewed supply concerns weighed on the market. Brent crude futures for November delivery dropped 54 cents, or 0.8%, to $67.43 a barrel by 03:20 GMT before expiring, while the more active December contract slipped 53 cents to $66.56. U.S. West Texas Intermediate (WTI) crude also declined, losing 50 cents, or 0.8%, to $62.95 per barrel.

The decline followed Monday’s sharp losses, when Brent and WTI both fell more than 3%, marking their steepest daily drop since August 1, 2025. Analysts pointed to expectations of fresh output from OPEC+ and the resumption of crude flows from Iraq’s Kurdistan region to Turkey as the main drivers of bearish sentiment.

Exports from northern Iraq resumed on Saturday for the first time in over two years, after an interim deal ended a long-standing deadlock. Meanwhile, OPEC and its allies, including Russia, are preparing for a meeting this weekend, where sources suggest the group is likely to approve an additional production increase of at least 137,000 barrels per day for November. Analysts warn that although OPEC+ production still falls short of its official quotas, markets remain uneasy about further supply.

At the same time, traders are balancing oversupply concerns with risks tied to Ukraine’s ongoing drone attacks on Russian refineries, which threaten to disrupt energy output. Adding pressure, fears of a U.S. government shutdown have amplified demand worries, with ANZ analysts noting that economic uncertainty could weaken consumption. A shutdown would also delay key economic data, including the payrolls report crucial for Federal Reserve policy decisions.

Elsewhere, U.S. President Donald Trump secured Israeli Prime Minister Netanyahu’s support for a Washington-backed Gaza peace plan, though Hamas’s position remains unclear. While geopolitics add complexity, the market’s immediate focus is on rising supply and its impact on oil demand outlooks.