Crude oil prices declined modestly on September 5, 2025, as investors awaited a critical OPEC+ meeting scheduled for Sunday, where a potential increase in oil output is expected to be discussed.
Brent crude futures dropped by 51 cents, or 0.8%, to $66.48 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 52 cents, also 0.8%, to $62.96 per barrel by midday London time.
This marks the third consecutive session of losses, with Brent down 2.4% and WTI down 1.7% for the week, signaling a shift in market sentiment amid growing supply concerns.
The downward pressure on prices was intensified by a surprise rise in U.S. crude inventories, which increased by 2.4 million barrels last week, contrary to analysts’ expectations of a drawdown.
This unexpected build in stockpiles, including a significant 1.6 million-barrel increase at the Cushing, Oklahoma storage hub, suggests weaker demand or oversupply in the market. The U.S. Energy Information Administration’s data, released after the Labor Day holiday, added to bearish sentiment among traders.
Market participants are closely watching the OPEC+ meeting, where eight member countries and allies like Russia are expected to consider further output hikes to regain market share lost to U.S. shale producers. Such a move would accelerate the unwinding of existing production cuts totaling approximately 1.65 million barrels per day, more than a year ahead of schedule.
Analysts warn that increased supply could further pressure prices, especially as refinery margins face tightening due to slowing global demand growth and maintenance activities.
Geopolitical factors continue to influence the oil market, with U.S. President Donald Trump urging European nations to cease purchasing Russian oil, aiming to reduce Moscow’s revenue amid ongoing conflicts.
Any disruption to Russian crude exports could counterbalance the supply increase from OPEC+, potentially supporting prices. Meanwhile, Russia has secured new oil supply deals with China, indicating a strategic pivot in its export markets.
Looking ahead, crude oil prices remain vulnerable to a complex interplay of supply decisions, inventory levels, and geopolitical developments. Analysts forecast that while prices may face downward pressure in the short term, any significant supply disruptions could trigger upward volatility.
Consumers may benefit from easing gasoline prices in the coming months, but oil-exporting countries could face economic challenges if prices remain subdued.
Sources: Reuters
Written By Ian Maleve
