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Oil Extends Drop as OPEC+ Weighs Stepping Up Output Hikes

(Bloomberg) -- Oil extended a sharp decline as OPEC+ considers boosting the pace of its output hikes in the coming months.

West Texas Intermediate fell toward $62 a barrel. The OPEC+ alliance meets on Sunday and is considering stepping up output hikes over the next three months. The group will discuss potentially lifting output by 500,000 barrels a day per month over a three-month period, a delegate said.

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OPEC+ would be adding barrels to a market that major forecasters say doesn’t need them. The International Energy Agency says global oil markets are set for a record oversupply next year, while French oil giant TotalEnergies SE published figures on Monday that showed the oil market will be oversupplied every quarter this year.

“Our balance sheet clearly suggests additional supply isn’t needed,” ING Groep NV analysts including Warren Patterson wrote in a note. “We expect the market to move into a large surplus in the fourth quarter and remain in surplus through 2026.”