ISLAMABAD: Global oil prices fell to a two-week low on Thursday after an unexpected build in U.S. crude inventories and growing speculation that OPEC+ may raise output in their meeting on Sunday.
Eight core members, often referred to as the ‘Voluntary Eight’ (V8), are now weighing an output increase starting in October. The group includes Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman.
A final decision is expected at the OPEC+ meeting on Sunday.
This comes after their earlier cut production by 2.2 million barrels per day (bpd), with the United Arab Emirates reducing a further 300,000 bpd to stabilize the market.
According to the U.S. Energy Information Administration (EIA) crude oil stockpiles rose by 2.4 million barrels last week, which was unprecedented for analysts who were expecting a 2.0 million barrel draw.
The American Petroleum Institute (API) also reported an increase but only by 0.6 million barrels.
Brent crude for October delivery closed at $68.12 a barrel on Friday, down 50 cents or 0.73%. The November contract, which is now the main one traders follow, slipped 53 cents or 0.78% to end the day at $67.45, as reported by Reuters.
Eight core members are now considering an output increase in October, Reuters reported, with a final decision expected at the alliance’s Sunday meeting.
Such a move would represent a shift from their strategy adopted in April.
Analysts say the decision to increase quotas was aimed at regaining market share, following diplomatic pressure from United States President Donald Trump to reduce energy prices.
Back in January, Trump pushed for oil price reductions during the annual World Economic Forum in Davos, Switzerland.
Past Comments
U.S. President Donald Trump called on Saudi Arabia and OPEC to reduce oil prices during the annual World Economic Forum in Davos.
Speaking to global leaders and business executives, Trump said he would formally request the oil-producing alliance to take action on energy costs.
"I'm also going to ask Saudi Arabia and OPEC to bring down the cost of oil," Trump announced during the session. He added, "You've got to bring down the oil price, you've got to end that war. They should have done it long ago; they're very responsible actually, to a certain extent, for what's taken place."
Trump’s comments come amid rising geopolitical tensions and ongoing efforts by the United States to curb Russian oil exports.
His administration has recently imposed tariffs on countries like India for purchasing Russian crude and urged European allies to reduce energy ties with Moscow.
