Latest News

Oil prices fall 1% due to expected global supply growth

The oil price fell more than 1% Monday, as OPEC+ announced plans to increase oil production in November. Also, the Kurdistan region of Iraq resumed oil exports via Turkey. This increased the outlook for global oil supply.

Brent crude futures fell $1.01 or 1.4% to $69.12 per barrel at 1019 GMT, after reaching their highest level since Friday, July 31. U.S. West Texas Intermediate Crude was down $1.11 or 1.7% at $64.61. OPEC+ (the Organization of Petroleum Exporting Countries, its allies and the group known as OPEC+) is expected to approve a further increase in crude oil production during its Sunday meeting.

Three sources said that the group will confirm an increase in November of at least 137,000 barrels a day as higher oil prices encourage efforts for regaining market share. OPEC+ is pumping less than their targets by almost 500,000 bpd, which defies market expectations that there will be a glut of supply. Iraq's oil minister said that crude oil from the semi-autonomous Kurdistan Region in northern Iraq flowed into Turkey on Saturday for the first time since 2-1/2 years.

Iraqi Oil Minister told Kurdish radio Rudaw that after years of deadlock an interim agreement will allow up to 190,000. bpd crude oil to flow into Turkey's Ceyhan Port.

It is estimated that the resumption will eventually bring 230,000 bpd worth of crude oil back onto international markets. The price drop on Monday followed a weekly gain of over 4% in both benchmarks for the last week, after Ukrainian drones attacked Russian energy infrastructure.

"Ukraine smells blood naturally here" SEB analysts say that Ukraine is likely to intensify its attacks on Russian refineries.

Russia launched a sustained attack on Kyiv, Ukraine and other parts early Sunday morning. This is the longest-lasting assault on the capital city since the Russian invasion of 2022. The United Nations has re-imposed an arms embargo on Iran and other sanctions over its nuclear program. Tehran has warned the measures would be met with a harsh reaction.

(source: Reuters)