Sources say that OPEC+ has agreed to delay the December production increase by one month.
Three sources within the producer group said on Sunday that OPEC+ had agreed to postpone by one month the planned increase in oil production for December, due to the weak demand, notably coming from China, and the rising supply from outside the group.
The OPEC+, which consists of the Organization of Petroleum Exporting Countries, Russia, and other allies was supposed to increase output by 180,000 barleys per day in the month of December. The increase was already postponed from October due to falling prices.
Sources told the media last week that the lack of demand and the economic data had raised concerns in the group regarding the addition of more supply. This was before the Sunday decision to delay the hike, which came after consultations among ministers.
The three sources who claimed that the increase had been delayed by one month declined to give their names.
The oil price closed Friday at just over $73 a barrel, partly due to the possibility of a delay in the OPEC+ production increase. Brent crude remains close to the lowest level of this year reached in September.
The increase in production of 180,000 bpd is compared to the 5,86 million bpd that OPEC+ has held back. This represents about 5.7% global demand. OPEC+ agreed to these cuts in separate steps starting 2022, as a way to support the market.
The eight OPEC+ member countries agreed in September that they would begin a gradual unwinding from December 2024 to next year of the most recent layer of production cuts - a reduction of 2.2 millions bpd.
The remaining OPEC+ reductions of 3,66 million bpd are in place until 2025.
OPEC+ Ministers meet in full to discuss policy decisions on December 1. Reporting by Alex Lawler and Olesya Astakhova, Editing by David Goodman & Barbara Lewis
(source: Reuters)
