Oil Prices Slip On Concerns Of OPEC+ Supply Boost In October

Crude oil prices slipped on Thursday as oversupply concerns continued to weigh in after reports suggested that OPEC+ was exploring another hike in output.

Benchmark Brent crude prices fell 0.6% to $67.21 per barrel, while U.S. West Texas Intermediate prices fell 0.7 to $63.53 per barrel at 4.35 a.m. ET. Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the 'bearish' territory at the time of writing.

According to a Reuters report, citing people familiar with the matter, the oil producer group will discuss a further rise in October production in a meeting scheduled for Sunday.

"We do not see too many positive drivers at this point, assuming geopolitical issues stay contained. Support for oil prices could diminish hereon," said DBS bank analyst Suvro Sarkar, according to the report. Sarkar reportedly expects Brent prices to trade closer to $60-$65 per barrel in the near to medium term.

OPEC+, led by the world's top oil exporter, Saudi Arabia, has already brought back 2.2 million barrels per day of curtailed production capacity since April, alongside another 300,000 bpd of output rise in the UAE.

The production growth is expected to outstrip the rise in demand. According to the International Energy Agency's August estimates, global crude demand will only rise by 700,000 bpd, compared with a 1.9 million bpd jump in supplies.

There are also concerns over oil demand in the world's top crude consumer, the United States. As per the Reuters report, citing American Petroleum Institute (API) figures, crude stocks rose by 622,000 barrels in the week ended August 29. Analysts polled by Reuters estimated that, on average, U.S. crude inventories fell by 2 million barrels.

However, the prospects of a prolonged conflict in Ukraine have provided support to oil prices.

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