OPEC+ Postpones Oil Output Hike Amid Market Volatility

OPEC+ is set to delay its planned increase in oil output, initially scheduled for January, in a bid to stabilize the market. The decision comes amid slowing global demand and increased external output, affecting prices. A three-month extension of existing cuts is expected.

OPEC+ has decided to postpone its anticipated oil output increase, originally slated to commence in January, as the oil cartel seeks to stabilize the market. This decision emerges against the backdrop of sluggish global demand and heightened output from non-OPEC members, which are exerting downward pressure on prices.

OPEC+, consisting of the Organization of the Petroleum Exporting Countries and allied nations like Russia, initiated virtual discussions to address these challenges. While a three-month extension of production cuts appears most probable, some insiders suggest a longer delay could also be on the table. Notably, all sources opted for anonymity and assured no unexpected resolutions from the meeting.

Despite implementing supply cuts, global oil prices have struggled to rise significantly. This year, Brent crude has hovered between $70 and $80 per barrel, recently trading near $73. The alliance is also tasked with addressing plans to incrementally increase UAE's production by 300,000 barrels per day starting in January 2025, a move the UAE is eager to proceed with.

(With inputs from agencies.)