September 5, 2024

OPEC+ is nearing an agreement to delay an oil output increase scheduled to start in October after oil prices hit their lowest in nine months, two sources from the producer group told Reuters on Thursday.

The move comes as oil prices have been falling together with other asset classes on concerns about a weak global economy and particularly soft data from China, the world’s biggest oil importer.

“It is likely that the countries will take action to balance the market by delaying the increase,” one the sources said. The second source said OPEC+ was “almost there” on getting an agreement.

Last week, the Organisation of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as it is known, was set to proceed with a 180,000 barrels-per-day output hike in October, part of a plan to gradually unwind its most recent cuts.

Fragile oil market sentiment over the prospect of more supply from OPEC+ and an end to a dispute halting Libyan exports, coupled with a weakening demand outlook, have raised concern within the group.

Oil prices rose on the possible delay, with global benchmark Brent crude rising to $73 a barrel on Thursday but remaining close to its lowest since December.

OPEC and the Saudi government communications office did not respond to requests for comment made on Wednesday.

REUTERS