OPEC+ considers postponing output increase as oil prices hit 9-month low

OPEC+ is reportedly considering postponing a planned increase in oil production next month, as oil prices have reached their lowest level in nine months.

According to three sources within the producer group, oil prices have been declining alongside other assets due to concerns over a weak global economy, particularly sluggish data from China, the world’s largest oil importer, Caliber.Az reports, citing foreign media.

While the group had initially planned to proceed with a 180,000 barrel per day (bpd) increase in October, recent market volatility, including disruptions at oil facilities in Libya and a weak demand outlook, has raised doubts within the group. One source indicated that there were discussions about delaying the output hike, with another source suggesting that a delay is becoming increasingly likely.

The Organization of the Petroleum Exporting Countries (OPEC) and the Saudi government’s communications office did not immediately respond to requests for comment. As part of a broader strategy, eight OPEC+ members were scheduled to increase output by 180,000 bpd in October. This increase was part of an effort to begin reversing their recent output cuts of 2.2 million bpd while maintaining other cuts until the end of the next year.

Brent crude prices rose by 1% to $74.47 per barrel at 1104 GMT on September 4, following news of a potential delay in the production increase. However, prices remained at their lowest since December. The recent weeks have seen significant price volatility, partly due to a standoff between rival factions in Libya over control of the central bank, which has resulted in a loss of at least 700,000 bpd of production.

On September 3, oil prices dropped by approximately 5% after reports emerged of a potential resolution to the conflict in Libya. Meanwhile, CEO Waal Sawan is expected to expand cost-saving measures to the highly profitable division, following significant cuts in the renewables and low-carbon businesses.