Oil Prices Drop as OPEC+ Output Plans Raise Fears of Oversupply

Crude oil prices slipped on Tuesday as traders reacted to signs that OPEC+ may raise production, a move that could tip the market further into surplus. The slide was reinforced by the return of Kurdish crude exports through Turkey after more than two years, adding fresh supply to the market.

In early European trading, Brent crude futures for November delivery were down nearly one percent, hovering close to $67.40 per barrel, while the more actively traded December contract fell to around $66.55. U.S. benchmark WTI also lost about 0.8 percent, trading at $62.95 per barrel.

The price pressure comes as reports suggest that OPEC+ is preparing to approve another production hike of at least 137,000 barrels per day at its upcoming meeting. Although several members are already struggling to meet their existing quotas, the prospect of additional supply has unsettled investor sentiment.

Adding to the supply picture, the Kurdistan region of Iraq resumed oil exports through a pipeline to Turkey, marking the end of a 30-month suspension. This reintroduction of crude into global flows has further weighed on market confidence.

At the same time, broader factors such as weaker demand growth, uncertainty in the U.S. economy, and the risk of political gridlock over budget approvals are clouding the near-term outlook. Geopolitical concerns, including drone strikes on Russian refineries, have offered only limited support, with supply-side developments dominating the market narrative.

Analysts remain cautious, noting that while OPEC+ may struggle to deliver the full increase, the balance between growing supply and tepid demand could keep oil prices subdued. Forecasts currently suggest Brent crude averaging around $67.60 per barrel for 2025, nearly unchanged from earlier estimates.