OPEC+ Deliberates Delay on Oil Output Increase Amid Global Challenges

OPEC+ is considering delaying its planned oil output increase scheduled for January 2025 due to global demand challenges and external production hikes. The group has postponed its policy meeting to December 5 to further discuss options. Recent talks have involved key energy ministers from Saudi Arabia, Russia, and the UAE.

OPEC+ is contemplating delaying its planned oil output hike, originally set to begin in January 2025, as stated by sources familiar with the matter. These discussions are taking place ahead of the group's postponed policy meeting on December 5, where various options will be considered.

The group's decision is influenced by a global demand slowdown and increased output from non-OPEC+ producers, which challenge the plan to gradually reverse output cuts through 2025. Despite ongoing supply restrictions, the global oil benchmark, Brent crude, has remained predominantly within the $70-$80 range this year, recently trading at approximately $73 a barrel.

In anticipation of its forthcoming meeting, OPEC+ has already engaged in high-level discussions involving key ministers from Saudi Arabia, Russia, and the UAE. The postponed meeting, initially scheduled for December 1, aims to avoid conflicting with a Gulf Arab summit in Kuwait City.

(With inputs from agencies.)