Nymex Overview: Oil Falls on Report of Another Possible OPEC+ Output Rise — OPIS

Crude oil prices were trading lower by midday Wednesday, reversing the previous session's gain, after Reuters reported OPEC and its allied producers would consider another production increase in October.

At noon ET, October NYMEX West Texas Intermediate contracts were 85cts lower to around $64.75/bbl and November WTI was down by 80cts to $64.30/bbl.

London-based November ICE Brent contracts were 80cts lower to about $68.30/bbl and December Brent was down by 80cts to $67.80/bbl.

Both oil benchmarks finished around $1 higher on Tuesday.

According to a Wednesday Reuters report citing unnamed sources, the move by OPEC+ to start unwinding a second layer of output cuts of about 1.65 million b/d would come as member countries seek to regain market share.

Most analysts, however, expect OPEC+ to keep its October production target unchanged because Russia and Iran cannot expand oil output further due to sales restrictions and limited capacity. The eight OPEC+ countries are scheduled to meet on Sunday.

In the spot market, Los Angeles and San Francisco CARBOB prices were 2.5-4.5cts/gal lower heading into afternoon trade, while other cash products reflected moves in NYMEX futures.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

• Reporting by Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com