Oil prices rise on reports of Opec+ delaying plans to boost output

 

Oil prices rose more than 2 per cent on Wednesday, after Reuters reported Opec+ could delay a planned oil production increase scheduled to take effect in December by a month or more, due to concerns about soft oil demand and rising supply.

Brent crude futures gained $1.41, or 2 per cent, to $72.53 a barrel by 1236 GMT. U.S. West Texas Intermediate crude futures edged up $1.34, or 2 per cent, to $68.55 per barrel.

Opec+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December. The group has cut output by 5.86 million bpd, equivalent to about 5.7 per cent of global oil demand.

"Opec+ has always advised that the unwinding of voluntary supply cuts would be subject to market conditions," said Harry Tchilinguirian, head of research at Onyx Capital Group

"That they may be reconsidering the timing of a return of their barrels is not surprising given the weak macroeconomic realities, particularly in China, which have led to downward revisions in global demand growth estimates," Tchilinguirian said.

A decision to postpone the increase could come as early as next week, two of the sources told Reuters.

Opec+ is scheduled to meet on Dec. 1 to decide its next policy steps.