OPEC+ Production Speculation Triggers Oil Price Drop

Oil markets tumbled more than 2% Wednesday as traders reacted to signals that OPEC+ may accelerate production increases. Brent crude slid $1.54 to $67.60/barrel while WTI dropped $1.62 to $63.97, marking the steepest single-day declines in three weeks.

The selloff precedes Sunday's critical VIRTUAL meeting where eight core OPEC+ members will reconsider output quotas. Analysts note the potential early unwinding of 1.65 million bpd cuts—originally scheduled through 2026—could flood markets with supply equivalent to 1.6% of global demand.

Price Futures Group's Phil Flynn observed shifting expectations: "The calculus changed overnight. Markets priced stability, but now face a credible threat of accelerated supply returns." The cartel appears determined to reclaim market share, potentially fast-tracking plans that WOULD see 2.2 million bpd reintroduced by September.