Crude oil prices extended losses on Thursday as investors positioned for the weekend meeting of the Organization of the Petroleum Exporting Countries and allies (OPEC+) where producers are expected to consider another increase in output quotas.
Brent crude oil, against which Nigerian oil is priced, declined by 46 cents or 0.7 percent to $67.14 a barrel at 05:16 a.m. in Nigeria while the U.S. West Texas Intermediate (WTI) fell 47 cents or 0.7 percent to $63.50 a barrel.
Eight OPEC+ members will review October output targets at Sunday’s meeting after already approving supply increases of 2.2 million barrels per day from April to September and an additional 300,000 barrels per day for the United Arab Emirates.
Analysts expect the group to expand quotas further as it seeks to consolidate market share.
ANZ Research said Brent remains under pressure as the potential release of additional barrels in the fourth quarter could worsen the expected surplus during a period of weak demand.
Commonwealth Bank of Australia analyst Vivek Dhar noted that the group appears more comfortable with a Brent range of $60 to $65 per barrel compared to its previous $70 target. A move into that range could weigh on U.S. shale supply growth, pushing WTI into the high $50 to low $60 band.
Despite accelerated supply increases, Middle Eastern crude grades remain the strongest globally. A report by Haitong Securities said this resilience has boosted Saudi Arabia and other producers’ confidence in expanding output, even at the cost of lower Brent futures.
Market participants are also monitoring U.S. inventory data. The American Petroleum Institute estimated crude stocks rose by 622,000 barrels for the week ended August 29, against expectations of a 2 million barrel draw. Official government figures are due later on Thursday following the U.S. holiday.
Analysts said additional OPEC+ production combined with rising U.S. inventories could deepen downward pressure on global benchmarks.
Investors remain focused on the outcome of Sunday’s meeting, which may determine whether Brent stabilises near current levels or tests the lower $60 band in the weeks ahead.