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.
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.
“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.”
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.
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