Oil -strips as OPEC plan contributes to the expectation of the supply surplus

By Georgina McCartney Houston (Reuters) oil prices fell on Tuesday when investors stood for a supply surplus next month due to possible OPEC plans for a larger output increase next month and the resumption of oil exports from the Kurdistan region of Iraq via Turkey. Brent Ru -Terma contracts for delivery in November, which expired on Tuesday, dropped 94 cents, or 1.38%, to $ 67.03 a barrel at 11:15 EDT (1515 GMT). The more active December contract dropped $ 1.11 or 1.65% to $ 65.98. The US Western Texas -Internmediary crude oil was $ 62.35 a barrel, $ 1.10 or 1.73%. On Monday, Brent and WTI both settled more than 3% lower, their sharpest daily decline since August 1st. At the meeting next Sunday, OPEC is likely to consider a larger oil production increase of 411,000 barrels per day (BPD) for November, two sources familiar with the talks said. A 411,000 hp jump in November would be three times the 137,000 hp increase that the organization of the Petroleum Exporting Countries plus Russia and other allies for October agreed. “This (OPEC) strategy can significantly push the margins for high-cost shale producers, which may force them to scale back the record-level output they maintained,” Stonex analyst, Alex Hodes said in a note on Tuesday. Meanwhile, crude oil flowed through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in two and a half years, after an interim agreement broke a stalemate, Iraq’s oil minister said. The market has remained cautious over the past few weeks, balancing the supply risks, mainly from the Ukraine’s drone attacks on Russian refineries, with the expectation of oversupply and poor demand. Elsewhere, US President Donald Trump won Israeli Prime Minister Netanyahu’s support for a US-backed Gaza Peace proposal, but Hamas’s attitude was uncertain. In an ideal scenario, the delivery traffic would return through the Sueza channel to a Gaza peace agreement, which would remove a significant part of the geopolitical risk premium, PVM’s Varga said. The possible risk of a US government contributed to the clumsy sentiment, and the question said in a note in a note on Tuesday. The market awaits weekly oil supply data from the American Petroleum Institute on Tuesday. (Reporting by Georgina McCartney in Houston, Enes Tunagur in London, Anjana Anil in Bengaluru and Emily Chow in Singapore; Editing by Christian Schmollinger, Barbara Lewis, Jan Harvey, Emelia Sithole matarise and David Gregorio)