Brent fell below USD 76 per barrel for November after a more than 2% loss on Friday, and West Texas Intermediate (grade given to crude oil) traded around USD 73. Oil prices dropped as OPEC+ indicated plans to increase production starting from October, while China’s economic challenges continued to grow.

Delegates involved in the discussions mentioned that the cartel is set to introduce an additional 180,000 barrels per day as it gradually resumes production that has been halted since 2022.

Chinese data over the weekend revealed that factory activity shrank for the fourth consecutive month in August, and the housing market decline worsened, sparking concerns about the ability of the world’s largest crude importer to achieve this year’s economic growth target.

Oil has relinquished most of its gains this year due to expectations of abundant supply and indications of economic challenges, particularly in the US, putting pressure on prices. Crude futures have experienced heightened volatility, with some of the largest intraday swings occurring in August.

OPEC+ has emphasised its readiness to “halt or reverse” its planned production increases if necessary. However, the political turmoil in Libya, which has led to a 50% reduction in the nation’s production, may have allowed the alliance to add more barrels.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!