OPEC+ Postpones Output Increases by One Month

OPEC+ has agreed to delay a planned December oil output increase by one month, three OPEC+ sources told Reuters on Sunday, as weak demand, particularly from China, and rising supply from outside the group continued to weigh on the market.

OPEC+, which includes OPEC members, Russia and other allies, was due to raise output by 180,000 barrels per day (bpd) in December, having previously postponed the increase from October due to low prices.

Oil prices settled just above $73 a barrel on Friday, supported in part by the prospect of OPEC+ delaying the output increase. Brent crude is still hovering near its lowest this year, reached in September.

Sources told Reuters last week that weak demand and economic data were making the group wary of adding more supply.

The decision to delay the increase was taken on Sunday after consultations among ministers, according to the information.

OPEC+ had previously postponed an increase in production from October due to low prices, declining demand and increased supplies. Prices were also pressured by easing investor concerns that the conflict in the Middle East would affect oil production from the region.

OPEC and Saudi Arabia have repeatedly reiterated that they do not target a specific price and make decisions based on market fundamentals and to achieve a balance between supply and demand.

OPEC+ is currently cutting production by a total of 5.86 million barrels per day, equivalent to about 5.7% of global demand, as part of a series of steps agreed since late 2022.

The latest agreement includes OPEC+ raising production by 180,000 barrels per day in December as part of a plan to gradually remove the latest tranche of voluntary cuts during 2025.

The production increase was postponed from October after prices fell.