Commodities Latest Market News: Oil Prices Plunge on Surprise Inventory Build and OPEC+ Output Expectations
Estimated reading time: 3 minutes
- Crude oil inventories surged unexpectedly, leading to a price drop.
- OPEC+ may increase production, adding to downward pressure on prices.
- WTI and Brent crude prices both experienced significant declines.
- The market anticipates further softening in the oil market.
- Upcoming OPEC+ meeting and EIA reports will be key factors to watch.
Contents
- Crude Inventories Surge, Weighing on Oil Prices
- Adding to the Bearish Pressure
- The Immediate Market Response
- What to Watch Next
Crude Inventories Surge, Weighing on Oil Prices
At 12:45 PM UTC on September 5, 2025, the oil market experienced a sharp decline following the release of the EIA’s Weekly Petroleum Stocks Report and renewed speculation regarding potential OPEC+ production increases. The report revealed a surprise build in U.S. crude oil inventories, significantly impacting the price of both WTI and Brent crude benchmarks. This development, coupled with growing expectations of higher OPEC+ output quotas at their upcoming meeting, fueled the downward price pressure.
The Energy Information Administration (EIA) reported a build of 2.4 million barrels in U.S. crude oil inventories for the week ending September 5th. This figure contrasted sharply with analyst expectations of a draw and the previous week’s draw. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ This unexpected increase in supply significantly impacted market sentiment, contributing to the subsequent price drop. The discrepancy between the actual inventory change and the consensus forecast proved to be the dominant factor driving the market’s reaction. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/
Adding to the Bearish Pressure
Adding to the bearish pressure, market participants are increasingly anticipating that the OPEC+ group might decide to raise production targets at their upcoming meeting scheduled for Sunday. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ This expectation, particularly with discussions suggesting an output increase in October, further dampened market optimism and contributed to the price decline.
The Immediate Market Response
The immediate market response was a significant drop in oil prices. WTI crude oil (October contract) settled at $62.65 per barrel, a decrease of $0.69, representing approximately a 1.1% decline. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ Brent crude oil (November contract) also fell, settling at $66.99 per barrel, down $0.61 or roughly 0.9%. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ The downward pressure extended to refined products as well. Heating oil (HO) October fell to $2.3049/gal, down 2.3 cents, and RBOB gasoline October dropped to $1.9740/gal, down 3.02 cents. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ The market’s term structure showed signs of further softening, with discussions around potential OPEC+ supply increases raising concerns about potential oversupply in the physical market.
This price action in the oil market dominated the broader commodities complex, with energy leading the declines for the day. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ The Sprague Energy market recap provides a snapshot of the trading activity as of 8:45 AM EDT / 12:45 PM UTC. https://www.spragueenergy.com/the-oil-market-settled-in-negative-territory-on-thursday/ Reuters’ daily commodities brief also highlighted these significant oil market moves. https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3US0CN:0-reuters-daily-commodities-brief-september-5/
What to Watch Next
- The upcoming OPEC+ meeting on Sunday and any announcements regarding production quotas.
- The release of the next EIA Weekly Petroleum Stocks Report, which could provide further insights into the direction of crude oil inventories.
- Continued monitoring of market sentiment and any updates to OPEC+ policy expectations as the next meeting approaches.
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