LONDON: Following the lowest level of crude prices in nine months, Opec+ announced on Thursday that it has decided to postpone a planned increase in oil output for October and November. The producers organization also stated that, if necessary, it might further halt or reverse the hikes.
Due to fears about a faltering global economy and soft data from China, the largest oil importer in the world, oil prices have been declining along with those of other asset classes.
On Thursday, oil prices remained close to a 14-month low. By 1739 GMT, US West Texas Intermediate crude had down 25 cents, or 0.4pc, to $68.95, while Brent futures had dropped 18 cents, or 0.3pc, to $72.52 a barrel.
Eight members of Opec+, the Organization of the Petroleum Exporting Countries and its allies led by Russia, convened virtually on Thursday to discuss raising output starting in October. Opec announced as much in a statement.
The further voluntary production restrictions of 2.2 million barrels per day by the eight participating countries will be extended for two months, until the end of November 2024, according to Opec.
With Brent futures reaching above $74 before retreating, the announcement increased oil prices by more than $1 per barrel. On Wednesday, it reached its lowest point of the year.
Opec+ had increased output by 180,000 barrels per day in October. This is a small portion of the 5.86 million barrels per day of oil it is withholding, or around 5.7% of world demand, in order to sustain the market in the face of surging supply outside the group and demand uncertainty.
