Brent crude settled at $67.60, down $1.54 (−2.23%), while U.S. West Texas Intermediate (WTI) closed at $63.97, down $1.62 (−2.47%).
The core eight OPEC+ members are considering another increase in October production quotas, potentially unwinding a second layer of cuts of 1.65 million barrels per day (1.6% of world demand) more than a year ahead of schedule. This comes on top of the 2.2 million bpd increase already phased in from April to September, plus an additional 300,000 bpd for the UAE. Analysts at SEB warned that if those barrels fully materialize, the market could shift into a “sizeable surplus” from late 2025 into 2026, leading to inventory builds unless producers pull back again.
Traders also took note of weaker U.S. labor market data. The Labor Department said job openings fell to 7.181 million in July, below expectations of 7.378 million, the steepest drop in months and another sign of slowing demand. Earlier this week, U.S. manufacturing was reported to have contracted for a sixth consecutive month.
Supply headlines also featured Nigeria, where parts of the 650,000 bpd Dangote refinery were taken offline due to catalyst leaks and other technical issues, with repairs expected to take at least two weeks.
Markets are currently awaiting API inventory data, with expectations for declines across crude, gasoline, and distillates.