Oil prices fell by nearly 3.5% Monday, as the Organisation of the Petroleum Exporting Countries (OPEC) Plus plans for another increase to oil output in November, and the resumption of oil exports by Iraq’s Kurdistan region via Turkey raised the global supply outlook.

Brent crude futures dropped $2.42, or 3.5% to $67.71 a barrel by 11:33 a.m. ET (1533 GMT) after settling at their highest since July 31 on Friday. US West Texas Intermediate crude was down $2.42, or 3.7%, at $63.32. OPEC+, is likely to approve another increase to crude oil production at its meeting on Sunday.

The group is expected to confirm an increase of at least 137,000 barrels per day for November as rising oil prices encourage efforts to regain market share, said three sources. However, OPEC+ has been pumping almost 500,000 bpd less than its targets, defying market expectations of a supply glut.

Rystad Energy’s chief economist Claudio Galimberti commented, “with OPEC+ pivoting toward market share, fundamentals look softer, and oversupply concerns prevail,” Iraq’s oil ministry is reporting that Crude oil flowed through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in 2-1/2 years on Saturday.

Crude oil flows from Kurdistan to Turkey’s Ceyhan port are running at 150,000-160,000 bpd, two industry sources told Reuters on Monday. The resumption is expected eventually to bring up to 230,000 bpd of crude back to international markets. Today’s oil price decline followed weekly gains of more than 4% for both benchmarks last week after Ukrainian drone attacks on Russian energy infrastructure hit the country’s fuel exports. Russia pounded Kyiv and other parts of Ukraine early on Sunday in one of the most sustained attacks on the capital since Russia’s invasion in 2022.