Oil Prices Decline As US Stockpiles Increase And OPEC+ Considers Output Hike

Oil prices continued their downward trend Thursday, with Brent crude hovering around $65 per barrel and West Texas Intermediate (WTI) just above $62. This marks a fourth consecutive day of declines, influenced by rising U.S. crude inventories and expectations of increased output from OPEC+ during their upcoming meeting on October 5.

The Energy Information Administration (EIA) reported a 3.5 million-barrel increase in U.S. crude stockpiles, the first rise in three weeks. Additionally, gasoline inventories saw their largest weekly gain since June, while refinery utilization dipped due to seasonal maintenance. These factors suggest a potential softening in domestic demand and refining activity.

Market participants are also anticipating that OPEC+ will agree to restore more idled supply, potentially adding up to 500,000 barrels per day to the market. This decision could exacerbate concerns about a global oil glut, especially as demand signals remain weak.

Analysts forecast that if current trends persist, Brent crude prices could average $59 per barrel in the fourth quarter of 2025, with further declines expected into early 2026.

The combination of increased U.S. stockpiles and potential OPEC+ production hikes has led to a bearish outlook for oil prices in the near term.

Originally published on IBTimes