OPEC Plus may cancel December oil production increase – CNN Economic

Three sources said Wednesday that the alliance OPEC plus He could postpone a planned increase in oil production that is expected to take effect in December by a month or more, citing concerns about weak oil demand and high supply.

The increase of 180,000 barrels per day was supposed to be implemented in October last year, but was postponed until December due to low oil prices. Oil.

But oil prices remain under pressure partly due to weak demand data, raising concerns in OPEC+ about adding more supply, and two sources said a decision to cancel the increase could come as soon as early next week.

One source told Reuters: “The December hike may be postponed because the market is not healthy enough. ”

The prospect of another OPEC+ hike delay helped push oil prices up 2 percent on Wednesday, but Brent crude is still trading at around $72 a barrel, near year-to-date lows. this was reached in September.

OPEC and the Saudi Government Communications Office did not immediately respond to requests for comment.

Two sources – people familiar with the OPEC Plus talks – said the increase scheduled for December could be delayed by at least a month, while a third source did not specify a timetable, and declined publish all their names.

The planned increase of 180,000 barrels per day represents a small portion of the 5.86 million barrels per day of production held back by OPEC Plus, equivalent to about 5.7 percent of global demand, to support brought to the market due to uncertainty regarding demand expectations and high supply outside the group.

The remaining cuts of 3.66 million barrels per day, agreed in previous measures, will remain in place until the end of 2025, and OPEC Plus ministers will hold a meeting of all members of the alliance to make a decision on policy on December 1.

(Reuters)