Oil prices saw a decline on Monday following the resumption of crude oil exports from Iraq’s Kurdistan region via Turkey over the weekend and as OPEC+ prepares for another oil output increase in November, which contributes to global supplies.

Brent crude futures decreased by 44 cents, or 0.64 percent, settling at $68.78 a barrel, after reaching the highest point since July 31 on Friday. Meanwhile, U.S. West Texas Intermediate crude traded at $65.23 a barrel, down 49 cents, or 0.75 percent, relinquishing most of Friday’s gains.

Crude oil flowed on Saturday through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in two and a half years, following an interim agreement that resolved a deadlock, as reported by Iraq’s oil ministry.

The accord between Iraq’s federal government, the Kurdistan regional government (KRG), and foreign oil companies operating in the region will permit the transportation of 180,000 to 190,000 barrels per day of crude to Turkey’s Ceyhan port, as stated by Iraq’s oil minister to Kurdish broadcaster Rudaw on Friday.

The United States had advocated for a restart, which is anticipated to eventually restore up to 230,000 barrels per day of crude to international markets at a time when OPEC+ is increasing output to capture market share.

Read more: Crude oil prices rise over 4 percent, marking biggest weekly gain in three months

OPEC+ set to approve production increase

The Organization of the Petroleum Exporting Countries and their allies, collectively known as OPEC+, are likely to approve another crude production increase of at least 137,000 barrels per day at their meeting on Sunday, as rising oil prices incentivize the group to further reclaim market share, according to three sources familiar with the discussions.

The Saudi Arabia-led group is expected to consider boosting output by at least the 137,000 barrels per day already planned for October during its online meeting on October 5, as reported.

This action would contribute to a series of output increases this year, reversing the significant reductions made in 2023 and 2024.

However, OPEC+ has been producing almost 500,000 barrels per day less than its targets, contrary to market expectations of a supply surplus.

The International Energy Agency has already cautioned that OPEC+ policy could lead the market into a record surplus by 2026, as supply growth outpaces demand.

Brent and WTI experienced a rise of more than 4 percent last week, marking their largest weekly gains since June, driven by Ukraine’s drone strikes on Russia’s energy infrastructure, which disrupted the country’s fuel exports.

In the meantime, the United Nations has reinstated an arms embargo and additional sanctions on Iran regarding its nuclear program, following a process initiated by European powers that Tehran has warned will meet with a severe response.