Oil prices extended their decline during Tuesday's Asian trade as expectations of fresh output increases from OPEC+ and the resumption of crude exports from Iraq’s Kurdistan region added to fears of a growing supply glut.
By 3:15 pm AEST (5:15 am GMT), Brent crude futures for December delivery slipped 39 cents, or 0.6%, to US$66.70 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 33 cents, or 0.5%, to US$63.12.
The retreat followed Monday’s steep drop, with Brent and WTI contracts settling 3.1% and 3.5% lower in their sharpest one-day decline since 1 August 2025.
The slide comes after Kurdistan resumed crude oil exports via Turkey for the first time in two-and-a-half years, following an interim deal that ended a prolonged deadlock, Iraq’s oil ministry confirmed.
At the same time, reports suggest OPEC+ will approve another production increase for November at its meeting on Sunday, with three sources telling Reuters the group is likely to add at least 137,000 barrels per day.
Markets remain cautious as they weigh ongoing risks to supply, particularly from Ukrainian drone strikes on Russian refineries, against weakening demand signals.
Analysts at ANZ said the threat of a potential U.S. government shutdown has further dampened sentiment, warning it could dent economic activity and delay key data, including the September payrolls report due Friday.
