Oversupply Fears Undercut Crude Oil Prices

Core Viewpoint - Crude oil and gasoline prices are experiencing a decline due to concerns over a global supply glut as OPEC+ plans to increase production levels, with the International Energy Agency projecting a record surplus in the oil market next year [1][3]. Group 1: OPEC+ Production Plans - OPEC+ is expected to discuss fast-tracking supply hikes of approximately 500,000 barrels per day (bpd) in three monthly installments starting in November, aiming to reverse a 1.66 million bpd supply cut [2]. - OPEC's crude production rose by 400,000 bpd to 28.55 million bpd in August, marking the highest level in over two years [2]. Group 2: Global Oil Market Outlook - The International Energy Agency (IEA) forecasts a record surplus in the global oil market next year of 3.33 million bpd, which is 360,000 bpd higher than previous projections [3]. - The resumption of oil exports from Iraq's Kurdish region is expected to add 500,000 bpd to global supplies, further pressuring crude prices [4]. Group 3: Demand and Storage Trends - India's crude imports fell by 2.9% year-on-year to 19.6 million metric tons in August, indicating reduced demand from one of the world's largest importers [5]. - Crude oil stored on stationary tankers increased by 3.7% week-on-week to 81.95 million barrels, suggesting a bearish outlook for oil prices [5].