Oil prices fall sharply on OPEC+ production hike report

Investing.com-- Oil prices fell further Thursday on renewed oversupply concerns, following a report suggesting that a group of top producers was considering raising output levels once more.

At 04:55 ET (08:55 GMT), Brent Oil Futures fell 1.2% to $64.16 per barrel and West Texas Intermediate (WTI) crude futures dropped 1.2% to $60.86 per barrel.

OPEC+ to hike production again?

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, is discussing whether to agree on another large production increase at their meeting on June 1, Bloomberg News reported on Thursday.

An output hike of 411,000 barrels a day (bpd) for July is among the options under discussion, although no final agreement has yet been reached, the report said, citing delegates.

OPEC+ has been in the process of unwinding output cuts, with additions to the market in May and June.

U.S. crude inventories jump unexpectedly - EIA

The crude market had retreated Wednesday after U.S. crude oil inventories unexpectedly increased for the week ending May 16, 2025, raising concerns about oversupply and contributing to a decline in oil prices.

The Energy Information Administration reported a 1.3 million-barrel rise in crude stockpiles, bringing total inventories to 443.2 million barrels. This build defied analyst expectations of a 1.3 million-barrel drawdown.

Additionally, gasoline and distillate inventories increased by 816,000 and 580,000 barrels, respectively, suggesting weakening demand. 

The start of the U.S. summer driving season after Memorial Day may boost demand and help draw down inventories, but recent forecasts and data points indicate supply outpacing demand.

U.S.-Iran talks to continue next week; oversupply worries persist

The fifth round of nuclear negotiations between Iran and the United States is scheduled for Friday, May 23, in Rome, with Oman continuing its role as mediator.

A central point of contention remains Iran’s uranium enrichment activities. While the U.S. demands a complete halt to enrichment, Iran insists on its right to enrich uranium for peaceful purposes.

If the negotiations make progress or lead to an easing of U.S. sanctions, Iran could increase its crude oil exports. Currently, Iran is exporting oil at reduced levels due to sanctions, but it holds significant capacity as it is the third-largest producer among OPEC members 

Ayushman Ojha contributed to this article.