Oil prices drop as OPEC+ weighs another output hike

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Oil prices drop as OPEC+ weighs another output hike.

commodities :: 1day ago :: source - reuters

By Ahmad Ghaddar

A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia. REUTERS

(Reuters) - Oil prices fell by more than 1% on Wednesday ahead of a weekend meeting of OPEC+ producers that is expected to consider another increase in production targets in October.

Brent crude fell 96 cents, or 1.4%, to $68.18 a barrel by 0945 GMT. U.S. West Texas Intermediate crude fell $1.02, or 1.6%, to $65.57 a barrel.

Eight members of the Organization 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, as the group seeks to regain market share.

Another 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.

Actual increases from the group, however, have fallen short of those pledges as some members compensated for previous over-production and others struggled to raise output due to capacity constraints.

Additional reporting by Colleen Howe in Beijing and Jeslyn Lerh in Singapore; Editing by Bernadette Baum and Barbara Lewis