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Oil dips as OPEC+ plan stokes supply-surplus concerns

The oil prices dropped on Tuesday, as another OPEC+ production increase was anticipated. Also, the resumption in the Kurdistan region of Iraq via Turkey has reinforced the prospect for a looming surplus.

Brent crude futures expiring Tuesday fell by 54 cents or 0.8% to $67.43 per barrel at 0320 GMT. The December contract, which is the more active, was down by 53 cents or 0.8% at $66.56 a barrel.

U.S. West Texas Intermediate Crude was trading at $62.95 per barrel, down by 50 cents or 0.8%.

These drops are a continuation of Monday's drop when Brent and WTI both settled over 3% lower, after recording their biggest daily declines since 1 August 2025.

In a note sent to clients, IG analyst Tony Sycamore noted that oil's fall came after Iraq's Kurdistan Region resumed crude exports on the weekend. He also wrote that reports indicate OPEC+ will likely approve an increase in November production at its meeting this coming weekend.

Three sources with knowledge of the discussions said that the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, including Russia, are likely to approve a further increase in oil production of at least 137,000 barallons per day during a Sunday meeting.

Ed Meir, Marex analyst, said that "even though (OPEC+) is under their quota in any case, the market does not like the fact more oil is coming into the country."

Iraq's oil minister said that crude oil began flowing through the pipeline on Saturday for the first time since 2-1/2 years after an interim agreement broke the deadlock.

In recent weeks the market has been cautious, as it balances supply risks, which are mainly caused by drone attacks from Ukraine on Russian refineries with concerns about oversupply and low demand.

In a Tuesday note, ANZ analysts said that the possibility of a U.S. shutdown had raised concerns about demand.

A U.S. shutdown of the government could affect a range of services, and also delay the release economic data, such as the payroll report scheduled for Friday, which is vital to the Federal Reserve's policy-making decisions.

Hamas, on the other hand, remained uncertain about its position. Reporting by Anjana Anil and Emily Chow, both in Singapore. Editing by Muralikumar Anantharaman.

(source: Reuters)