Oil prices dropped over 2% on Wednesday as OPEC+ prepares to discuss increasing production targets for October. Brent crude fell to $67.54 a barrel, while U.S. West Texas Intermediate crude dropped to $63.91 a barrel. OPEC+ members are considering raising oil production to regain market share, with discussions ongoing.

The potential increase in oil production before the meeting has surprised traders, as they expected OPEC+ to maintain current levels. OPEC+ is looking to unwind a second layer of output cuts ahead of schedule, which could lead to a surplus in the market from September 2025 through 2026.

The group had previously agreed to raise output targets by 2.2 million barrels per day from April to September, along with a 300,000 bpd quota increase for the United Arab Emirates. However, actual output increases have not met these targets due to various factors, including over-production and capacity constraints.

Concerns about the oil market moving into a surplus have led to a drop in prices, along with soft economic data impacting demand outlook. U.S. job openings fell in July, while manufacturing in the country has seen a sixth consecutive month of contraction. Additionally, Nigeria’s Dangote refinery is facing operational issues, affecting production.

Market participants are now waiting for U.S. government data on crude stockpiles, while concerns about a surplus in the oil market persist. Economic data showing a decrease in job openings and continued manufacturing contraction in the U.S. have contributed to the drop in oil prices. Repair issues at Nigeria’s Dangote refinery are also impacting production.

Read more at Yahoo Finance: Oil prices drop as OPEC+ weighs another output hike