OPEC+ Set to Proceed with October Oil Output Increase Amid Libyan Outages and Demand Uncertainty

OPEC+ is proceeding with a planned oil output hike in October to counterbalance Libyan outages and pledged compensatory cuts by some members. Despite sluggish demand growth, particularly in China, and falling oil prices, the group remains committed to the increase. Future production hikes will be assessed monthly.

OPEC+ is set to proceed with its planned oil output increase in October, aiming to counterbalance the impact of Libyan supply disruptions and compensatory cuts by some members, six sources told Reuters.

The scheduled hike involves boosting output by 180,000 barrels per day as part of efforts to unwind the latest production cuts of 2.2 million bpd while maintaining other cuts until the end of 2025.

A slowdown in demand growth, especially in China, has affected oil prices, leading some analysts to question OPEC+'s decision. However, sources confirmed that the plan is on track, with expectations of a U.S. Federal Reserve interest rate cut potentially bolstering economic growth.

OPEC, Saudi Arabia, and Russia's Deputy Prime Minister's offices did not immediately comment. Brent crude prices dropped about $1, trading just below $79 a barrel. Future output hikes will be determined monthly.

(With inputs from agencies.)