OPEC+ Delays Oil Output Increase To Boost Market

OPEC+ plans to delay its scheduled increase in oil output, originally set for January. The decision, discussed in an online meeting, aims to support the struggling oil market amid global demand slowdown and rising output from non-OPEC members. An extension of output cuts seems likely.

OPEC+ is set to postpone its planned increase in oil production, originally scheduled for January, according to an insider source from the alliance who spoke to Reuters. This move is intended to offer extra support to the currently fragile oil market.

Although the group, responsible for nearly half of the world's oil supply, had planned a gradual rollback of output cuts until 2025, several challenges have emerged. A slowdown in global demand and the increase in oil production outside of OPEC+ pose significant hurdles, affecting prices negatively.

Numerous sources within OPEC+ have indicated to Reuters that extending the current output cuts by an additional three months appears to be the most probable decision. However, some suggest that a longer extension might also be on the table. These discussions remain confidential, with all sources requesting anonymity.

(With inputs from agencies.)