The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, slumped Tuesday as crude headed for its fifth loss in seven days on news that Russia may not want to reduce output.

That news came ahead of the next meeting of the Organization of Petroleum Exporting Countries (OPEC). Russia isn’t an official member of the cartel, but as one of the world’s largest oil producers, the country is viewed as part of “OPEC +.”

“Brent has rallied about 15% this year, supported by a pact by the Organization of the Petroleum Exporting Countries and its allies, including Russia – a group known as OPEC+ – to cut combined oil output by 1.2 million barrels per day from Jan.1,” reports Reuters.

A Petroleum Threat

The expected global supply glut is also the latest threat to the Organization of the Petroleum Exporting Countries and other producers, which have already enacted production caps in an attempt to stabilize prices and balance the market. Predictably, geopolitical headwinds factor into the oil equation.

“Russia is unlikely to agree to deepen cuts in oil output at a meeting with fellow exporters next month, but could commit to extend existing curbs to support Saudi Arabia, three sources said,” according to Reuters.

Weekly U.S. inventories data is scheduled to be released Wednesday, prompting speculation that the report will show another increase in supply. The U.S. and Russia are two of the world’s top producers and both countries are pumping at record levels.

Related: OPEC Deals a Major Blow To Oil ETFs 

Other oil plays include the United States 3x Oil (NYSEArca: USOU), ProShares UltraPro 3x Crude Oil ETF (NYSEArca: OILU)  and the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (NYSEArca: GUSH).

“OPEC and its allies will consider whether to deepen cuts to crude supply when they next meet in December due to worries about weak demand growth in 2020, sources from the oil-producing club said,” reports Reuters.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.