Sources say that OPEC+ is likely to continue with its planned production increase from October.

OPEC+ will proceed with a planned increase in oil production from October as Libyan outages, and pledged reductions by some members, to compensate for the overproduction, counteract the impact of sluggish consumer demand, according to six sources within the producer group.

Eight OPEC+ member countries are expected to increase their output by 180,000 barrels a day in October as part of a strategy to unwind the most recent layer (2.2 million bpd) of cuts while maintaining other cuts until end-2025.

Oil prices have been impacted by a slowdown in the growth of demand, notably China. Some analysts are unsure whether the Organization of the Petroleum Exporting Countries (OPEC+) will proceed with the increase in October.

Six OPEC+ source told us that the plan to increase output remains in place, as the loss in Libyan production tightens up the market.

Requests for comment from OPEC, Saudi Arabia's government communications office, and Alexander Novak's office in Russia did not immediately receive a response.

One source said: "There are many unknowns about demand, but there's also hope that the Fed will cut interest rates to boost the economy."

Brent crude fell about $1 Friday, trading at just below $79 per barrel by 1341 GMT.

OPEC has previously stated that it can pause or reverse production increases if the market isn't strong enough.

Two sources stated that future production increases will be determined on a monthly basis.

OPEC+ will not hold any formal discussions until the top ministers of a group called the Joint Ministerial Monitoring Committee, which meets on October 2, meet. The JMMC has the power to make recommendations for the broader OPEC+ group.

The increase planned for October is a small fraction of the 700,000. bpd in offline

Libyan

The oil production and compensation cuts promised by Iraq, Kazakhstan, and Russia. (Reporting and editing by Kirsten Doovan, Louise Heavens, Kirsten Lawler and Yousef Sabah, with additional reporting and editing by Alex Lawler and Olesya Astakhova. Additional reporting and editing by Yousef Saba.

(source: Reuters)