OPEC+ Mulls Delaying October Oil Output Hike Amid Price Slump

OPEC+ is considering postponing a planned oil output increase in October due to falling oil prices and weak global economic data, especially from China. The group, led by Saudi Arabia and Russia, aims to stabilize the market amid concerns over fragile demand and increased supply from Libya.

OPEC+ is contemplating delaying a scheduled oil output increase for October after global oil prices hit their lowest in nine months, sources within the group informed Reuters. The potential delay comes in response to falling global asset prices and weak economic data from China, the world's largest oil importer.

Last week, OPEC+ planned to proceed with a 180,000 barrels-per-day increase in October as part of a strategy to unwind recent output cuts. However, market sentiment remains fragile due to prospective new supply and weak demand. Sources suggest a delay in the October output hike is 'highly possible.'

Following news of the potential delay, oil prices saw a temporary boost, with Brent crude rising to a session high before falling again. The Saudi government and OPEC have yet to comment on the matter. Analysts highlight concerns about Chinese demand and global refining margins as key reasons for the cautious approach by OPEC+.

A downturn in Chinese economic performance has affected growth projections for 2024, and analysts propose that OPEC+ may delay increasing production until December. The group has previously agreed to extend significant output cuts until the end of 2025 to manage the market amid uncertain demand and rising external supply.

(With inputs from agencies.)