Oil drops over 3% to close below $68 a barrel

Oil drilling rigs

Oil prices slumped today, Sept. 29, pressured by speculation that the OPEC+ alliance will approve another supply increase, heightening concerns about a global supply glut.

Brent crude futures for November delivery dropped about 3.10%, or $2.16, to $67.97 a barrel. WTI crude futures for November delivery fell 3.45%, or $2.27, to $63.45 a barrel.

This came after reports indicated that the OPEC+ alliance intends to approve a new production increase of no less than 137,000 barrels per day starting in November, during a meeting scheduled for next Sunday.

Meanwhile, the Iraqi Ministry of Oil announced the resumption of oil flows through the pipeline linking Kurdistan and Turkey, starting last week, for the first time in two and a half years. This resumption is under a temporary agreement between Baghdad, the regional government, and oil companies that allows the export of between 180,000 and 190,000 barrels per day.

Claudio Galimberti, Chief Economist at Rystad Energy, told Reuters that OPEC+ shift to focusing on increasing market share has made market fundamentals appear weaker due to supply glut concerns.