Sources say that OPEC+ is discussing a delay in the planned increase of oil production for October.

Three sources within the group said that OPEC+ was discussing a possible delay to a planned increase in output next month, as oil prices have fallen to their lowest level in nine months.

Oil prices are falling along with other asset classes due to concerns over a weakening global economy, and in particular soft data coming from China, which is the world's largest oil importer.

Sources said that the group was initially planning to increase production by 180,000 barrels per day in October. However, market volatility due to the shutdown of oil facilities in Libya, and a weak outlook for demand have caused concern among the group.

One source said that there were suggestions for delaying the increase. One source said that a delay looked highly likely.

Requests for comments were not immediately responded to by the Saudi government's communications office or the Organization of the Petroleum Exporting Countries.

Eight members of OPEC+ – which includes allies – are scheduled to increase output by 180,000 bpd this October. This is part of a plan that will begin to unwind their most recent layer, which was 2.2 million bpd. Other cuts will remain in place until next year.

Brent crude rose 1% to $74.47 per barrel on Wednesday at 1104 GMT, despite the news that the delay could be delayed. It remained at the lowest level since December.

In recent weeks, prices have been volatile as a standoff in OPEC producer Libya between rival factions over control of the Central Bank led to a production loss of 700,000 bpd.

On Tuesday, prices fell by about 5% after news broke that a possible agreement to end the conflict is in the works.

A weak Chinese demand, as well as a decline in global refining profits that could lead refiners to process less crude oil have all weighed.

Helima Croft, an analyst at RBC Capital, said that China's poor performance has impacted growth forecasts for 2024 and continues to lag both crude imports and refinery output levels from 2023. (Yousef SABA in Dubai contributed additional reporting; Louise Heavens, Emelia Sithole Matarise and Emelia Sithole edited the article.)

(source: Reuters)