Oil prices plunged 1.5% on Thursday, extending a more than 2% decline in the previous session, as investors awaited the weekend OPEC+ meeting where producers are expected to consider another production hike.

Brent crude fell $1, or 1.5%, to $66.59 a barrel at 11:04 GMT, while U.S. West Texas Intermediate crude fell $1, or 1.6%, to $62.95 a barrel.

The eight-member Organization of the Petroleum Exporting Countries (OPEC+) and its allies – known collectively as OPEC+ – will consider further production increases in October at a meeting on Sunday, two sources familiar with the discussions told Reuters, as the group seeks to regain market share.

A potential OPEC+ production increase would send a strong signal that regaining market share takes precedence over price support, said PVM analyst Tamas Varga. OPEC+ has agreed to raise its production target by about 2.2 million barrels per day from April to September, in addition to a 300,000 barrel per day quota increase for the United Arab Emirates.

Over the past few months, despite accelerating production increases, Middle Eastern oil prices have remained the strongest regional prices globally. This has bolstered the confidence of Saudi Arabia and other OPEC members to increase production, according to a Haitong Securities report.

Further weighing on prices is some shaky US macroeconomic data, which showed job openings fell to a 10-month low in July, consistent with improving labor market conditions and supporting expectations that the Federal Reserve will cut interest rates this month.

The market is also awaiting government data on US crude oil inventories, due to be released on Thursday, a day later than usual due to a national holiday on Monday, to gauge the strength of demand in the world's largest oil consuming nation. US crude oil inventories rose by 622,000 barrels in the week ending August 29, market sources said, citing figures from the American Petroleum Institute on Wednesday. (alg)

Source: Reuters