OPEC+ Delays Oil Output Hikes Amid Falling Crude Prices

OPEC+ has decided to postpone planned oil output increases for October and November due to falling crude prices. The group, which includes the Organization of the Petroleum Exporting Countries and allies like Russia, aims to stabilize the market as global economic concerns and weak demand from China persist.

OPEC+ has opted to delay its planned oil output increases for October and November, citing falling crude prices. The producers' group, which includes OPEC and allies led by Russia, announced the decision on Thursday after oil prices hit a nine-month low. The group stated that it could further pause or reverse the hikes if necessary.

The decision came after a virtual meeting of the eight OPEC+ members that had been scheduled to raise output. These members have agreed to extend their voluntary production cuts of 2.2 million barrels per day until the end of November 2024. The move lifted oil prices by over $1 a barrel, with Brent futures trading above $74 before paring gains.

Weak Chinese demand and a slump in global refining margins have also contributed to the reduced oil prices. Analysts suggest that OPEC+ might wait until December to return extra barrels to the market. The planned output increases will gradually phase out from December 1, 2024, until November 2025, with the flexibility to adjust as necessary.

(With inputs from agencies.)