OPEC+ Considers Delay in Output Increase as Oil Prices Plummet
OPEC+ is currently in discussions regarding a potential delay in the planned output increase for next month, as oil prices have recently hit their lowest point in 9 months. Sources within the producer group revealed this information to Reuters on Wednesday.
Initially, the group was set to move forward with a 180,000 barrel per day (bpd) increase in October. However, due to market volatility stemming from oil facility shutdowns in Libya and a bleak demand outlook, concerns have arisen within the group regarding this decision.
"There are suggestions to delay the increase," one of the sources stated. Another added that a delay is appearing "highly possible" at this stage.
In October, eight OPEC+ members are slated to raise output by 180,000 bpd as part of a larger plan to gradually reverse their recent output cuts of 2.2 million bpd, while still maintaining other cuts until the end of next year.
Analysis:
This news suggests that OPEC+ is considering a delay in their planned output increase due to the current state of the oil market. This decision could potentially impact oil prices and global supply levels, which in turn may have consequences for consumers and investors worldwide. It is crucial for individuals to stay informed about such developments in order to make informed decisions regarding their finances and investments.
