Crude Oil Prices Drop as OPEC and Allies Weigh Output Increase

Crude oil futures slipped on Thursday as reports suggested that the Organization of the Petroleum Exporting Countries (OPEC) and its allies may raise supply again to strengthen their market position.

At 9:55 a.m., oil benchmarks were trading lower:

• Brent crude (November contract) fell 0.64% to $67.17.
• WTI crude (October contract) declined 0.69% to $63.53.

On the Multi Commodity Exchange (MCX):

• September crude futures dropped 0.60% to ₹5,600 from ₹5,634.
• October contracts slipped 0.62% to ₹5,584 from ₹5,619.

OPEC and Allies’ Next Move

According to a Reuters report, OPEC and its partners are expected to review possible production increases for October at their meeting on Sunday.

The group has already committed to boosting supply by 2.2 million barrels per day (bpd) from April through September. The United Arab Emirates also secured an additional 300,000 bpd quota.

If members approve another increase, it would speed up the reversal of earlier supply cuts totaling 1.65 million bpd—around 1.6% of global demand—well ahead of schedule. However, some analysts believe the alliance could pause additional hikes for October.

U.S. Inventory Data Weakens Outlook

Fresh data from the American Petroleum Institute (API) added pressure to crude markets.

For the week ending August 29, U.S. crude inventories rose by 0.62 million barrels, surprising traders who had expected a draw of 3.4 million barrels. The official stockpile report from the Energy Information Administration (EIA) is due later Thursday.

Other Commodities Mixed in Early Trade

• Menthaoil (September MCX) gained 2.93% to ₹999 from ₹970.60.
• Cottonseed oilcake (September NCDEX) edged up 0.29% to ₹3,426 from ₹3,416.
• Guargum (September NCDEX) slipped 0.60% to ₹9,262 from ₹9,318.

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