HG MARKETS:

Oil prices continued their decline on Thursday, extending losses from the previous session as investors awaited a pivotal OPEC+ meeting scheduled for the weekend. The market remains focused on potential output decisions that could further impact global supply dynamics. Brent crude fell to $67.14 per barrel, while U.S. West Texas Intermediate (WTI) dropped to $63.50 per barrel, following a more than 2% decrease in the prior session.

The downward pressure on prices comes amid growing expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) may announce additional production increases at their upcoming meeting on Sunday. According to two sources familiar with the matter, eight member countries are set to consider boosting output targets for October, as the group aims to reclaim market share, potentially signaling a shift in priority from price support to supply expansion.

OPEC+ had previously agreed to raise production targets by approximately 2.2 million barrels per day between April and September, alongside a separate 300,000 bpd quota increase for the United Arab Emirates. Despite the ramp-up in output, Middle Eastern oil prices have remained the strongest among global benchmarks, reinforcing confidence among producers such as Saudi Arabia to continue increasing supply. A recent report from Haitong Securities noted that this regional price strength has emboldened key OPEC members.

Adding to bearish sentiment were signs of weakening U.S. economic data. Job openings in July dropped to a 10-month low, reflecting a cooling labor market and strengthening the case for a potential interest rate cut by the Federal Reserve later this month.

Traders are also closely monitoring U.S. crude inventory data, which was delayed by a day due to a U.S. holiday earlier in the week. Preliminary figures from the American Petroleum Institute (API) released Wednesday indicated a build of 622,000 barrels for the week ending August 29, raising further concerns about demand in the world’s largest oil-consuming nation.

As markets await the outcome of Sunday’s OPEC+ meeting, sentiment remains cautious, with traders balancing the prospect of increased supply against uncertain demand and broader macroeconomic headwinds.