LONDON: Opec+ has agreed to delay a planned oil output increase for October and November, the producers group said on Thursday after crude prices hit their lowest in nine months, adding that it could further pause or reverse the hikes if needed.
Oil prices have been falling along with other asset classes on concerns about a weak global economy and soft data from China, the world’s biggest oil importer.
Oil prices held near a 14-month low on Thursday. Brent futures were down 18 cents, or 0.3 per cent, to $72.52 a barrel by 1739 GMT, while US West Texas Intermediate crude fell 25 cents, or 0.4pc, to $68.95.
Eight members of Opec+, which is made up of the Organisation of the Petroleum Exporting Countries and allies led by Russia, that had been scheduled to raise output from October held a virtual meeting on Thursday, Opec said in a statement.
“The eight participating countries have agreed to extend their additional voluntary production cuts of 2.2 million barrels per day for two months until the end of November 2024,” Opec said.
The news lifted oil prices by over $1 a barrel, with Brent futures trading over $74 before paring gains. It fell to its lowest this year on Wednesday.
Opec+’s planned October hike was for 180,000 bpd, a fraction of the 5.86 million bpd of output it is holding back, equal to about 5.7pc of global demand, to support the market due to uncertainty about demand and rising supply outside the group.
Published in Dawn, September 6th, 2024
