Oil prices fell Thursday as market sentiment turned bearish on news that OPEC+ may raise output in July, fueling worries that supply could exceed demand.
Brent crude dropped 47 cents, or 0.72%, to settle at $64.44 per barrel, while U.S. West Texas Intermediate closed 37 cents lower, down 0.6%, at $61.20.
The decline followed a Bloomberg report that OPEC+ is weighing a 411,000-barrel-per-day production increase at its June 1 meeting. Although no decision is final, the potential move added to selling pressure already triggered by an unexpected U.S. inventory build.
Analysts said the market is reacting to signs that OPEC+ may be shifting away from price support in favor of defending market share. Kazakhstan’s 2% production boost in May and earlier reports of plans to ramp up group output through November added to oversupply concerns.
Bearish momentum was reinforced by EIA data showing a 1.3 million barrel increase in U.S. crude stocks last week. Demand for gasoline and distillates also slipped, while rising imports hinted at weaker consumption trends.
Losses were partly limited by renewed uncertainty around U.S. sanctions enforcement. Secretary of State Marco Rubio said Chevron’s license to operate in Venezuela will expire on May 27. While markets were cautious due to past extensions, some traders saw potential for near-term supply disruption.