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Oil falls sharply at settlement
Oil prices fell sharply on Monday, September 29, after the Kurdistan Region of Iraq resumed crude exports via Turkey over the weekend, while OPEC+ plans to increase production again in November, boosting global supply.
Brent crude futures fell $2.16, or 3.08%, to settle at $67.97 a barrel, after reaching their highest level since July 31 on Friday.
U.S. West Texas Intermediate (WTI) crude fell $2.42, or 3.7%, to $63.32 a barrel.
OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is likely to agree to a further increase in crude oil production at its meeting on Sunday.
Three informed sources said the group is likely to agree to a new production increase of at least 137,000 barrels per day (bpd) for November, as rising oil prices encourage the group to regain market share.
OPEC+ is pumping nearly 500,000 bpd below its target, contradicting market expectations of a supply surplus.
"Continued concerns about increased production are limiting gains, but expectations of tighter near-term supply are weighing on oil prices as the trading week begins," Michael McCarthy, CEO of investment platform Momo in Australia and New Zealand, told Reuters.
The Iraqi Oil Ministry announced that crude flowed through a pipeline from the Kurdistan Region of northern Iraq to Turkey on Saturday for the first time in two and a half years, following an agreement that allowed exports to resume.
The Iraqi Oil Minister told the Kurdish Rudaw TV channel on Friday that the agreement between the federal government, the Kurdistan Regional Government, and foreign oil producers in the region allows the flow of between 180,000 and 190,000 bpd of crude to the Turkish port of Ceyhan.
Informed sources indicated that the United States has been pressing for the restart, which is expected to eventually return up to 230,000 barrels per day to global markets, at a time when OPEC+ is working to increase production to boost its market share.
