The eight OPEC+ members are scheduled to raise production by 180,000 barrels per day in October, as part of a plan to begin removing their most recent level of output cuts of 2.2 million bpd while continuing other cuts until the end of 2025.
A slowdown in demand growth, particularly in China, has weighed on oil prices and prompted some analysts to doubt whether the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will go ahead with an October hike.
But six OPEC+ sources told Reuters that plans to increase output remained in place as the loss of Libyan production tightened the market and hopes that the US Federal Reserve would cut interest rates in mid-September.
“There are many uncertainties on demand but there is also hope that the Fed’s interest rate cuts will boost economic growth,” one of the sources said.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman earlier said OPEC+ may pause or reverse production increases if the market is not strong enough.
No formal OPEC+ talks are scheduled until top ministers on the panel convene a meeting of the Joint Ministerial Monitoring Committee on October 2. The JMMC can make recommendations to the wider OPEC+ group.
OPEC, the Saudi government’s communications office and the office of Russian Deputy Prime Minister Alexander Novak did not immediately respond to requests for comment.
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