OPEC+ Considers Delaying Oil Production Hike

By Alex Lawler, Olesya Astakhova, and Dmitry Zhdannikov
LONDON/MOSCOW (Reuters)
OPEC+ could delay a planned hike in oil production scheduled for December by a month or more, according to three sources from Reuters on Wednesday. Concerns regarding weak oil demand and increasing supply were cited.

The proposed increase of 180,000 barrels per day was already pushed back from October due to falling prices. Oil prices continue to experience pressure from weak demand data, prompting OPEC+ to reconsider increasing supply.

A decision regarding the delay may be announced as early as next week, said two sources. One source indicated that "the market is not healthy enough" to support the December hike. The anticipated delay caused oil prices to rise by 2% on Wednesday, though Brent crude is still trading around $72 per barrel, close to its lows reached in September.

OPEC, along with the Saudi government communications office, did not respond to comments immediately.

Among the sources familiar with OPEC+ discussions, two indicated the December increase might be postponed for at least a month, while another did not provide a specific time frame. All sources requested anonymity.

The planned 180,000 bpd increase is a small portion of the 5.86 million bpd that OPEC+ has held back, representing around 5.7% of global demand. This measure aims to support the market amid rising supply uncertainties outside the group.

The December hike relates to eight OPEC+ members who agreed in September to gradually unwind previous output cuts, which amounted to 2.2 million bpd. The remaining cuts, totaling 3.66 million bpd, will stay in effect until the end of 2025.

A full OPEC+ ministers meeting is scheduled for December 1 to decide on further policy changes.