Oil Price Edges Lower Amid Concerns Over Ballooning Surplus

Wall Street Journal

4 days ago

0233 GMT — Oil prices edge lower in early Asia trade. OPEC+ is expected to take a break before unwinding the next layer of voluntary cuts or otherwise face a ballooning surplus in the oil market, says Kieran Tompkins, Capital Economics senior climate and commodities economist, in a note. CE's base case is that OPEC+ will begin raising output again from 2Q 2026, which is consistent with the price of Brent crude falling this year and the next, he adds. Having raised output rapidly since its pivot to a more aggressive stance in April, the group's decision this weekend with a similarly rapid pace in September came as little surprise to market watchers, he says. Front-month WTI crude oil futures are down 0.1% at $66.24/bbl, while Brent crude oil futures are also 0.1% lower at $68.70/bbl. ([e-mail]; @ivy_jiahuihuang)