According to sources within OPEC+, discussions are underway to postpone a planned output increase next month, as oil prices have dropped to their lowest point in 9 months. Last week, the group seemed poised to move forward with a 180,000 barrel per day (bpd) hike in October. However, recent market volatility stemming from oil facility shutdowns in Libya and a gloomy demand forecast have sparked concerns among members.
One source revealed, “There are suggestions to delay the increase,” while another stated that a delay is “highly possible” at this stage. Eight OPEC+ countries are set to boost output by 180,000 bpd in October as part of a strategy to gradually reverse their most recent layer of output cuts, totaling 2.2 million bpd. The plan also includes maintaining other cuts until the end of next year.
Analysis: The potential delay in the planned output increase by OPEC+ could have significant implications for global oil markets. If implemented, this decision could help stabilize oil prices in the short term, providing relief to consumers and energy companies alike. However, it may also indicate underlying concerns about the state of the global economy and the future of oil demand. Investors and individuals closely monitoring oil prices should pay attention to any developments in this regard to make informed decisions about their financial portfolios and energy consumption.