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OPEC+ Considers Delaying December Oil Output Increase Amid Weak Demand

2024-10-31 19:50:43.485000

In a significant development for the global oil market, OPEC+ is contemplating postponing a planned increase in oil output scheduled for December. This decision comes as concerns over weak oil demand and rising supply continue to loom large. Originally set to increase production by 180,000 barrels per day, this hike was already delayed from October, indicating a cautious approach by the oil-producing coalition. Sources suggest that a final decision could be made as early as next week, with OPEC+ ministers scheduled to meet on December 1 to discuss their policy moving forward.

Currently, Brent crude prices hover around $72 per barrel, reflecting the market's sensitivity to OPEC+ decisions. The coalition is currently holding back approximately 5.86 million barrels per day, which accounts for about 5.7% of global oil demand. Additionally, remaining cuts of 3.66 million barrels per day are set to last until the end of 2025, highlighting the ongoing efforts by OPEC+ to stabilize the market amid fluctuating demand.

The recent discussions within OPEC+ come against a backdrop of rising tensions in global energy markets, particularly due to the ongoing conflict between Russia and Ukraine. These geopolitical factors have further complicated the supply and demand dynamics, making the upcoming OPEC+ meeting crucial for the future of oil prices and global energy stability.

Overall, the potential delay in the December output hike reflects OPEC+'s cautious stance in navigating current market challenges. Investors and analysts alike are closely monitoring these developments, as they could have significant implications for the global economy and energy sector.

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