Oil Prices Tumble After Report OPEC+ Will Accelerate Production Hikes

OPEC+ is to discuss fast tracking its latest round of supply hikes in three monthly instalments of about 500,000 barrels a day to recoup market share.

This comes after the cartel announced earlier this month that they were adding a much smaller amount than that – about 137,000 barrels a day – leaving a question mark about how fast the rest will be returned.

So, now, Bloomberg reports that, according to a delegate, Saudi Arabia and its partners will review the expedited return of the remainder of a 1.66 million barrel-a-day supply tranche when they meet on Oct. 5.

The result is further pressure on the price of oil…

…testing the lows of its recent channel (ironically extending losses after similar rumors hit crude prices yesterday).

The IEA already forecast that the oil market is headed for a record supply-demand surplus next year.

Finally, we note that Saudi Crown Prince Mohammed bin Salman is heading to Washington in November to meet with President Donald Trump, who has called for lower oil prices (infuriating Dallas Fed survey respondents who said Trump’s energy policies are crushing local workers).