OPEC+ May Delay December 180,000 bpd Output Increase by One Month, Sources Say

Oct 30, 2024, 12:29 PM

Oil traders and market analysts are divided over whether OPEC+ will proceed with its planned 180,000 barrels per day oil production increase scheduled for December. Sources within OPEC+ say that the group could delay the production hike by one month or more, citing concerns over soft oil demand and rising supply. The planned increase could amount to as much as 2.2 million barrels per day over the following year, a significant change that could impact market balances. A survey of traders indicated that 16 out of 30 expect OPEC+ to delay the increase, while the remaining 14 believe the hike will proceed as planned. Oil prices have declined by 18% since July, adding pressure on the group to reconsider its output strategy. Observers note that OPEC+ had previously delayed an October production hike after insisting it would proceed, suggesting a similar outcome may occur for December.