Oil prices slipped on Wednesday, falling nearly 2%, as investors looked ahead to a key OPEC+ meeting scheduled for the weekend. The meeting will bring together members of the Organization of the Petroleum Exporting Countries and its allies to discuss whether to further raise production targets starting in October.
By mid-morning in London, Brent crude dropped $1.16, or 1.7%, to trade at $67.98 per barrel, while U.S. West Texas Intermediate crude lost $1.28, or 2%, to settle at $64.31 per barrel. The decline followed a brief rally in the previous session after Washington imposed sanctions on companies accused of smuggling Iranian oil disguised as Iraqi supplies.
According to sources close to the talks, eight OPEC+ members are weighing an additional boost in output, which would unwind a second layer of cuts totaling 1.65 million barrels per day—around 1.6% of global demand—more than a year earlier than planned.
The group, which collectively produces nearly half of the world’s oil, had already agreed to lift output by 2.2 million barrels per day between April and September, alongside an extra 300,000 barrels for the United Arab Emirates.
However, not all producers have met their quotas, as some have struggled with capacity limits while others were forced to offset past overproduction. These challenges have left actual increases below initial commitments.
Market sentiment was also influenced by expectations of a drop in U.S. crude inventories. A preliminary Reuters poll suggested stockpiles likely fell by 3.4 million barrels in the week ending August 29, alongside declines in gasoline and distillate reserves.
Despite these supportive signals, weaker economic data has dampened oil’s momentum. U.S. manufacturing contracted for a sixth consecutive month, weighed down by tariffs and sluggish business confidence, which clouded the demand outlook.
Analysts argue that the combination of potential OPEC+ supply increases and lingering global economic uncertainty could keep prices under pressure in the near term.
For now, traders are closely watching Sunday’s meeting outcome, which will be pivotal in shaping market direction heading into the final quarter of the year.