Oil prices may drop further as Opec+ boosts output from Oct

The latest decision of the Organisation of Petroleum Exporting Countries and its allies, commonly known as Opec+, to boost output is being seen as an attempt to regain market share lost to the US, Brazil, and other oil producers, who have been increasing production recently.

- SHUBHANGI MATHUR

The grouping had effected two voluntary production cuts in the past — first 1.66 million barrels per day (bpd), announced in April 2023, and the second of 2.2 million bpd with effect from November 2023. Beginning April this year, Opec+ had been increasing production every month. The latest September production increase fully reversed the 2.2 million bpd voluntary cut.

The latest Opec+ decision could drive benchmark Brent to trade below $65 per barrel (bbl), even tanking below $60/bbl by the end of December 2025, experts say. Currently, Brent is trading in the range of $66-$68/bbl and crude oil could drop further as Opec+ decided to boost production from October despite waning demand.