OPEC+ is close to reaching an agreement to delay an oil output increase planned for October after crude prices hit a nine-month low, two sources from the producer group told Reuters on Thursday.
The move comes as prices for global benchmark Brent LCOc1 have been falling along with other asset classes on concerns about a weak global economy and particularly weak data from China, the world’s largest crude importer.
“Countries are likely to take measures to balance the market by delaying the increase,” said one of the sources. The second said OPEC+ is “close” to reaching an agreement.
Last week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia (OPEC+), decided to raise production by 180,000 barrels per day in October, as part of a plan to gradually reduce the most recent cuts.
The fragile climate of the oil market in the face of the prospect of increased supply from OPEC+ and the end of the conflict that paralyses Libyan exports, coupled with the weakening demand outlook, have raised concerns within the group.
Oil prices rose on the prospect of a delay, with Brent trading above $73 a barrel in the session but remaining close to its lowest level since December.
OPEC and the Saudi government’s communications office did not respond to requests for comment on Wednesday.
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