OPEC+ Moves Forward with Oil Output Increase Amid Market Uncertainties

OPEC+ plans to proceed with an oil output hike from October despite sluggish demand and potential market uncertainties. Eight member countries will boost production by 180,000 barrels per day. This increase aims to balance Libyan production losses and possible economic growth spurred by a U.S. Federal Reserve interest rate cut.

OPEC+ is set to move forward with a planned oil output increase starting in October, despite uneven demand and potential market uncertainties, according to six sources within the producer group.

Eight OPEC+ members are slated to boost production by 180,000 barrels per day as part of a strategic plan to begin easing their most recent output cuts of 2.2 million bpd. Other cuts will remain in place until the end of 2025. Analysts are skeptical about the plan amid sluggish demand growth, particularly in China.

However, OPEC+ sources believe that Libyan production losses will tighten the market, and a U.S. Federal Reserve interest rate cut in mid-September could stimulate economic growth, justifying the production hike. Saudi Energy Minister Prince Abdulaziz bin Salman has indicated the group may pause or reverse the hike if market conditions worsen. No formal talks are scheduled before the Joint Ministerial Monitoring Committee meeting on Oct. 2.

(With inputs from agencies.)