WTI falls toward $63.00 as OPEC+ plans to increase Oil output

• WTI price depreciates due to prevailing oversupply concerns.

• OPEC+ will discuss potential production hikes for October at its policy meeting on Sunday.

• API Weekly Crude Oil Stock unexpectedly rose 0.6 million barrels versus an expected 3.4 million-barrel draw, hinting at sluggish demand.

West Texas Intermediate (WTI) Oil price extends its losses for the second consecutive day, trading around $63.20 per barrel during the Asian hours on Thursday. Crude Oil prices depreciate as reports suggest that OPEC+, the Organization of the Petroleum Exporting Countries and its allies, will consider fresh production increases in October at its policy meeting on Sunday.

The OPEC+, aiming to reclaim market share, may start unwinding 1.65 million barrels per day of output cuts, around 1.6% of global demand. The Oil cartel had already agreed to lift output targets by roughly 2.2 million barrels per day between April and September, alongside an additional 300,000 bpd quota increase for the United Arab Emirates, per Reuters.

The American Petroleum Institute (API) showed that US Weekly Crude Oil Stock rose by 0.6 million barrels, against the expectations of a 3.4 million-barrel draw, signaling weaker consumption. Fuel demand prospects were further clouded by a slowdown in the US economy. ISM Manufacturing Purchasing Managers Index (PMI) came in at 48.7 in August, falling short of the expected 49.0 reading.

Traders await Thursday’s weekly Initial Jobless Claims, the ADP Employment Change, and the ISM Services Purchasing Managers Index (PMI), seeking fresh cues on the US Federal Reserve’s (Fed) policy outlook in September. Attention will shift toward Friday’s data, including US Nonfarm Payrolls expected to add about 75,000 jobs in August, while the Unemployment Rate is expected to be seen at 4.3%.