Oil prices fell again on Thursday, marking the fourth straight day of decline. Brent crude dropped to its lowest level since early June, as traders worried about too much oil in the market.
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Sources say OPEC+ may agree to raise production by as much as 500,000 barrels per day in November — three times more than the increase for October. Saudi Arabia is reportedly leading this move to regain its share of the market.
Jorge Montepeque, Managing Director of Onyx Capital Group, said some banks, including Macquarie, are warning of a possible “super glut” — meaning there could be far more oil than needed, which is lowering market confidence.Meanwhile, the finance ministers of the G7 countries said on Wednesday they plan to increase pressure on Russia by targeting those who keep buying Russian oil.
The United States also plans to give Ukraine intelligence to help with long-range missile strikes on Russian energy sites.
According to officials, this will help Ukraine attack refineries, pipelines, and other key facilities to cut Russia’s oil revenue.UBS analyst Giovanni Staunovo said there are renewed concerns that Russian oil supplies could be disrupted.
However, he added that unless actual disruptions occur, the effect on oil prices will likely be small.
