Oil prices fell by more than 1.5% on Wednesday ahead of an upcoming meeting of OPEC+ producers that is expected to consider another increase in production targets in October.
Brent crude fell to $67.98 a barrel at the time of writing while US West Texas Intermediate crude fell 1.9%, to $64.32.
It comes as eight members of the Organisation of the Petroleum Exporting Countries and allies (OPEC+) will consider further raising oil production at a meeting on Sunday, two sources familiar with the discussions told Reuters.
The boost would mean that OPEC+, which pumps about half of the world’s oil, would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule.
The group had already agreed to raise output targets by about 2.2 million barrels per day from April to September, in addition to a 300,000 bpd quota increase for the UAE.
It also follows the US Treasury Department announcing on Tuesday a round of sanctions on a network involved in selling Iranian crude abroad after blending it with Iraqi crude in order to disguise its real origin.
“By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies,” Treasury Secretary Scott Bessent said in a statement.