OPEC delays output increase as oil hits yearly lows

OPEC announced on Thursday that it would delay a planned oil output increase for October and November following a drop in crude prices to their lowest in nine months. The group also stated that it might further pause or reverse the hikes if necessary. Oil prices saw a modest rebound following the news, with Brent futures rising by over $1/barrel before trimming gains.

Eight OPEC members who were set to raise output starting in October agreed to extend their voluntary production cuts of 2.2 million barrels/day until the end of November 2024. OPEC will hold its next full meeting to decide on policy on December 1, with an earlier gathering of top ministers scheduled for October 2.

Despite the delay in production hikes, oil prices remained at a 14-month low on Thursday due to concerns over demand in the U.S. and China, along with the potential increase in Libyan supplies. Brent futures edged down by 1 cent to settle at $72.69/barrel, while WTI slipped 5 cents to $69.15/barrel.

This marked the lowest close for Brent since June 2023 for the second consecutive day and the lowest for WTI since December 2023 for the third day in a row.