Advertisements

OPEC+ Reportedly Delays Output Increase Plans, Driving Up Oil Prices

by Krystal

Oil prices rose over 2% on Wednesday following a report from Reuters suggesting that OPEC+ may delay its planned oil production increase, initially scheduled for December, by at least a month. The potential delay is attributed to concerns about weakening oil demand and growing supply.

By 12:36 GMT, Brent crude futures climbed $1.41, or 2%, reaching $72.53 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.34, or 2%, to $68.55 per barrel.

Advertisements

OPEC+, which includes the Organization of the Petroleum Exporting Countries along with allies like Russia, had planned to boost output by 180,000 barrels per day in December. Currently, the group is holding back 5.86 million barrels per day (bpd), about 5.7% of global demand.

Advertisements

“OPEC+ has consistently indicated that any easing of supply cuts would depend on market conditions,” said Harry Tchilinguirian, head of research at Onyx Capital Group. “It’s unsurprising they may reconsider the timing of adding more barrels, especially given the weak economic outlook in China, which has prompted reductions in global demand growth forecasts.”

Advertisements

According to two sources, OPEC+ may announce the decision to delay as soon as next week. The group is set to meet on December 1 to determine its upcoming policy direction.

Advertisements

Related Topics:

Advertisements
Advertisements

You may also like

oftrb logo

Oftrb.com is a comprehensive energy portal, the main columns include crude oil prices, energy categories, EIA, OPEC, crude oil news, basic knowledge of crude oil, etc.

【Contact us: [email protected]

© 2023 Copyright oftrb.com – Crude Oil Market Quotes, Price Chart live & News [[email protected]]