London/Dubai/Moscow: OPEC+ has agreed to delay a planned December oil output increase by one month, three sources from the producer group told Reuters on Sunday, as weak demand notably from China and rising supply outside the group maintain downward pressure on the oil market.
The OPEC+ group, combining the Organization of the Petroleum Exporting Countries plus Russia and other allies, was scheduled to raise output by 180,000 barrels per day in December. It had already delayed the increase from October because of falling prices.
However, weak demand and economic data raised concern in the group about adding more supply, sources told Reuters last week ahead of the decision to postpone the hike made on Sunday after consultations between ministers.
All of the three sources, who said the increase was delayed by a month, declined to be identified by name.
Oil prices closed on Friday just above $73 a barrel, supported in part by the prospect of a further delay to the OPEC+ increase. Brent crude is still close to its lowest levels this year, reached in September.
The planned increase of 180,000 bpd compares with the 5.86 million bpd of output OPEC+ is holding back, equal to about 5.7% of global demand. OPEC+ agreed those cuts in separate steps since 2022 to support the market.
The December increase was due to come from the eight OPEC+ members who had agreed in September to start a gradual unwinding of the group's most recent layer of output cuts - a cut of 2.2 million bpd - from December 2024 into next year.
The remaining OPEC+ cuts of 3.66 million bpd will remain in place until the end of 2025.
OPEC+ ministers hold a full meeting of the group to decide policy on Dec. 1.