FX.co ★ Oil Falls for 3rd Day as OPEC+ Mulls Hike

Brent crude oil futures dropped below $66 per barrel on Wednesday, marking their lowest point in over three weeks as part of a continued decline over the past three days. This downturn comes as OPEC+ considers implementing more rapid increases in supply. The organization is set to meet on Sunday to deliberate on raising output by 500,000 barrels per day each month for the next three months. This is despite warnings from major forecasters that the market is already experiencing an oversupply. The International Energy Agency predicts record surpluses for the following year, and TotalEnergies has highlighted a potential surplus in the first quarter. Compounding the situation, U.S. production reached an unprecedented 13.6 million barrels per day in July. However, traders remain skeptical that the complete OPEC+ increase will be realized, due to Saudi Arabia's caution concerning capacity constraints. In the meantime, Russia's limited diesel export ban and prolonged gasoline restrictions have provided only slight support, as these measures were anticipated and are narrowly focused.