Oil Prices Hit Over Two-Month Low on OPEC+ Hike Fears


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil prices fell nearly 3% Monday (9/29), their biggest 
one-day slide since mid-July, on signs a monthly OPEC+ meeting this week will 
greenlight more output that could add to supply.

   The return of nearly a quarter million bpd of northern Iraqi oil to the 
market after a 2-1/2-year export ban added to the weight on prices.

   In crude oil, NYMEX-traded WTI futures contract for November delivery 
settled down $2.48, or 3.8%, at $63.24 bbl. That was the U.S. crude benchmark's 
sharpest one-day drop since July 14, according to DTN data.

   ICE Brent for November delivery retreated $2.42 to $67.71 bbl.

   Among oil products, October RBOB gasoline futures slid $0.0446, or 3.42%, to 
$1.9930 gallon.

   Diesel was the only component of the oil complex that bucked Monday's 
broader trend, with the front-month ULSD contract rising $0.0824 to $2.3465 
gallon.

   The U.S. dollar index remained little changed at 97.875, down 0.219 points 
against a basket of foreign currencies.

   Tuesday's plunge in oil prices was a renunciation of last week's 5% gain in 
WTI and 4% in Brent as the market responded to heightened geopolitical backdrop 
in Europe surrounding Russia and the Trump administration's pressure for 
greater sanctions against Russian oil.

   But as a new week opened, the market's attention returned to supply concerns 
and the potential that the virtual meeting of OPEC+ on Wednesday could add to 
its November production. The 23-nation oil producing alliance is currently 
focused on reclaiming market share, a move that could add to the risk of a 
crude glut.

   The market was already surprised by the October quota increase of 137,000 
bpd, which, despite being smaller than previous adjustments, marked a 
continuation of unwinding voluntary cuts.

   Adding to the pressure on oil prices was the resumption of flows along the 
Kirkuk-Ceyhan pipeline over the weekend, delivering oil from northern Iraq to 
Turkish export terminals for the first time since 2023.  At least 200,000 bpd 
from that are likely to return to the market immediately.




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