DTN Oil Update
Oil Prices Hit Over Two-Month Low on OPEC+ Hike Fears
SECAUCUS, N.J. (DTN) -- Oil prices fell nearly 3% Monday, Sept. 29, their biggest one-day slide since mid-July, on signs a monthly OPEC+ meeting this week will greenlight more output that could add to supply.
The return of nearly a quarter million bpd of northern Iraqi oil to the market after a 2-1/2-year export ban added to the weight on prices.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
In crude oil, NYMEX-traded WTI futures contract for November delivery settled down $2.48, or 3.8%, at $63.24 bbl. That was the U.S. crude benchmark's sharpest one-day drop since July 14, according to DTN data.
ICE Brent for November delivery retreated $2.42 to $67.71 bbl.
Among oil products, October RBOB gasoline futures slid $0.0446, or 3.42%, to $1.9930 gallon.
Diesel was the only component of the oil complex that bucked Monday's broader trend, with the front-month ULSD contract rising $0.0824 to $2.3465 gallon.
The U.S. Dollar Index remained little changed at 97.875, down 0.219 points against a basket of foreign currencies.
Tuesday's plunge in oil prices was a renunciation of last week's 5% gain in WTI and 4% in Brent as the market responded to heightened geopolitical backdrop in Europe surrounding Russia and the Trump administration's pressure for greater sanctions against Russian oil.
But as a new week opened, the market's attention returned to supply concerns and the potential that the virtual meeting of OPEC+ on Wednesday could add to its November production. The 23-nation oil producing alliance is currently focused on reclaiming market share, a move that could add to the risk of a crude glut.
The market was already surprised by the October quota increase of 137,000 bpd, which, despite being smaller than previous adjustments, marked a continuation of unwinding voluntary cuts.
Adding to the pressure on oil prices was the resumption of flows along the Kirkuk-Ceyhan pipeline over the weekend, delivering oil from northern Iraq to Turkish export terminals for the first time since 2023. At least 200,000 bpd from that are likely to return to the market immediately.