Categories: EnergyJust Politics

Oil prices drop ahead of OPEC+ meeting

Oil prices eased on Wednesday, September 3, 2025, as traders looked ahead to an OPEC+ meeting over the weekend.

Brent crude fell 19 cents, or 0.3%, to $68.95 a barrel by 0433 GMT, while U.S. West Texas Intermediate crude dipped 16 cents, or 0.2%, at $65.43 a barrel.

The benchmarks settled up more than 1% in the previous session after the United States imposed new sanctions on a network of shipping companies and vessels led by an Iraqi-Kittitian businessman for smuggling Iranian oil disguised as Iraqi oil.

Oil futures continue to be supported by the fresh sanctions which signal the possibility of tighter supply ahead, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Structural volatility persists, with sanctions on Iran and geopolitical flashpoints shaping the risk premium and keeping crude anchored near recent strength,” Sachdeva added.

The market was also waiting for the results of a meeting of eight members of the Organization of the Petroleum Exporting Countries and their allies on September 7.

NNPC appoints new spokespersons

Analysts said the group is unlikely to make further changes to production for now.

“Geopolitical risks continue to influence oil price trends. The market is eyeing the upcoming OPEC meeting and remains on edge for further increases leading to an oversupply,” said Emril Jamil, senior analyst at LSEG.

Also supporting prices, U.S. crude oil stockpiles were expected to have fallen last week, along with distillate and gasoline inventories, a preliminary Reuters poll showed on Tuesday.

Three analysts polled by Reuters ahead of weekly inventory data estimated on average that crude inventories fell by about 3.4 million barrels in the week to August 29.

But soft economic data kept prices capped. U.S. manufacturing contracted for a sixth straight month as President Donald Trump’s tariffs hit business confidence and economic activity, weighing on the demand outlook for oil.

The Star

Segun Ojo

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