Oil prices extended their losing streak for a fourth session on Tuesday as mounting supply concerns weighed on the market, following a decision by Organization of the Petroleum Exporting Countries (OPEC+) to significantly increase output in September.
By 2:50 pm AEST (4:50 am GMT), Brent crude futures were down 12 cents, or 0.2%, to US$68.64 per barrel, while West Texas Intermediate (WTI) crude slipped 13 cents, or 0.2%, to US$66.16.
Both benchmarks had declined around 1.4% in the previous session, closing at one-week lows.
OPEC+ agreed on Sunday to raise output by 547,000 barrels per day in September, the latest in a string of production hikes aimed at reclaiming lost market share.
This marks an early reversal of the group's largest tranche of production cuts, totalling around 2.5 million barrels per day, or 2.4% of global oil demand.
However, analysts note the real supply increase is likely to be smaller due to logistical and compliance constraints.
Despite the oversupply risks, geopolitical tensions continue to offer a floor to prices.
Analysts at ANZ noted: “The market is also keeping a close eye on renewed geopolitical pressures that could impact supply. Trump renewed his warnings to India over Russian oil.
"India has become a major buyer of the Kremlin’s oil since the 2022 invasion of Ukraine. Any disruption to those purchases would force Russia to find alternative buyers from an increasingly small group of allies.”
United States President Donald Trump is reportedly preparing to impose 100% secondary tariffs on buyers of Russian crude in a move that could significantly upend global flows.
This follows a 25% tariff on Indian imports announced in July, as Washington increases pressure on India to halt Russian purchases amid efforts to bring Moscow to the negotiating table over Ukraine.
The heightened uncertainty around Russia’s oil exports has sparked concern that any major shift in trade patterns could cause fresh market disruptions, even as overall supply climbs.
