Oil Dips Below $70 as OPEC+ Signals Higher Output Despite Middle East Risks
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Crude oil prices extended their decline this week, with Brent falling below $70 a barrel amid signs OPEC+ is preparing to unwind production cuts faster than expected.
The cartel and its allies are reportedly considering adding another 400,000 barrels per day in early 2026, on top of recent increases. The move reflects confidence in demand growth and a desire to regain market share.
Energy traders have taken the signals as bearish, particularly with global inventories building and economic growth forecasts moderating.
“Supply is coming back online just as demand faces headwinds from higher interest rates and slower growth in China,” said Amrita Sen at Energy Aspects.
Geopolitical risks in the Middle East have failed to provide lasting support, with markets appearing to price in minimal disruption to supplies.
U.S. shale producers are also ramping up activity in response to sustained prices above $65. Rig counts have risen steadily in recent months.
The weaker outlook has weighed on energy stocks, with ExxonMobil and Chevron both down over 3% this week. Renewable energy names have outperformed in comparison.
For consumers, lower oil prices could translate into cheaper gasoline heading into the new year — welcome relief after years of volatility.
But analysts warn the market remains fragile. Any escalation in regional tensions or unexpected demand surge could quickly reverse the downtrend.
