WASHINGTON (dpa-AFX) - Crude oil prices fell sharply on Wednesday amid increasing concerns of oversupply due to reported plans by OPEC+ to boost output that will be decided in their upcoming meeting on Sunday.
WTI Crude Oil for October delivery was last seen trading down by $1.65 (or 2.52%) at $63.94 per barrel.
The OPEC+ alliance is in the process of re-claiming market share. The alliance, which pumps about half of the world's oil needs, has already reversed output cuts from April.
Eight OPEC+ countries are meeting on Sunday to decide on October output. It is widely reported that another output hike is in the offing though some traders believe that the group could also opt to pause increases in October.
Traders, however, concerned about markets being hit with possible oversupply, are closely watching the developments.
In their last meeting in August, the cartel agreed to raise output by 547,000 barrels per day for September.
On the geopolitical front, the war between Russia and Ukraine is showing no sign of ending, with both sides engaging in an exchange of attacks.
Trump's mediation between both the nations as well as his 'sanctions threats' against Russia's oil exports have been futile as Russia remains uncooperative to any peace push.
If Trump imposes his proposed sanctions against Russian oil exports, it could trigger a major supply side concern.
On the demand front, the market consensus appears to be that the strong summer demand is at its peak and global oil consumption may slow down in the fourth quarter.
In the US, the Federal Reserve is expected to cut rates at their September 16-17 meeting, which could impact the value of the US dollar.
Trump fired a Fed board of governor last week in what is widely seen as an attempt to assert his influence over the Fed.
As crude oil is a dollar-denominated commodity, traders are closely watching the Fed's moves.
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