Due to concerns that OPEC+ may increase production at the weekend meeting, oil prices have fallen.

Market concerns about OPEC+ increasing oil supply again at the meeting on Sunday have escalated fears of rising oil production later this year, leading to a drop in oil prices. Brent crude futures prices initially dropped by 1.4% before recovering some lost ground. Reports on Wednesday stated that the alliance would consider a new round of production increases at the weekend policy meeting, causing oil prices to plummet. Russian Deputy Prime Minister Alexander Novak later stated that OPEC+ would make a decision after "comprehensively evaluating the current situation". Several representatives of the alliance have mentioned that the next course of action has not yet been determined. Inventory data also added pressure to oil prices. Industry estimates in the US showed a 2.1 million barrel increase in crude inventories at the Cushing storage hub in Oklahoma, the pricing benchmark for West Texas Intermediate crude, last week. If official data confirms this on Thursday, it will be the largest weekly increase since March. Brent crude prices have fallen by around 10% this year as OPEC+ quickly reversed significant production cuts to regain market share from competitors. Meanwhile, non-OPEC oil-producing countries are also increasing supply, and market concerns about oil demand have intensified with the Trump administration implementing a series of trade tariffs. Overall, these factors have led to widespread forecasts of oversupply in the oil market, with expectations of a significant increase in global oil inventories. Kashaf Rochia, founder of consulting firm Oilytics, stated, "Oil prices may fall due to OPEC+ production increases, but the market will eventually realize that OPEC's spare capacity is decreasing." Non-farm payroll data is set to be released on Friday, and the macroeconomic outlook is also being closely monitored by the market. The Federal Reserve stated that economic activity in most parts of the US has "hardly changed or remained entirely unchanged" in recent weeks. Additionally, job vacancies have hit a 10-month low - a data point suggesting decreased hiring intentions among businesses amidst increased policy uncertainty. Goldman Sachs reiterated its bearish view on oil, citing expectations of production surpassing consumption. Analysts, including Samantha Dart, stated in a report, "We still believe that the oversupply situation in the current oil market will worsen." They also predicted that by the end of 2026, Brent crude prices will fall to the lower end of the $50 per barrel range.