Oil Rebounds After Slump as OPEC+ Considers Delaying Production Increase

Oil prices rebounded on Wednesday following a prolonged decline, after OPEC+ sources told Reuters that the group of producers is discussing delaying the production increase scheduled for October.

Brent crude futures rose 45 cents, or 0.6%, to $74.20, while U.S. West Texas Intermediate (WTI) futures gained 55 cents, or 0.8%, to $70.89. Both benchmarks lost $1 earlier and then regained $1 from their Tuesday close before stabilizing at current levels.

In just over a week, Brent futures prices dropped by 11%, or around $9, hitting a low of $72.63 on Wednesday. On Tuesday alone, the benchmark prices fell by more than 4%.

Weak economic data from the United States and China exacerbated ongoing concerns about a global economic slowdown and weakened oil demand, contributing to a broader decline in global markets.

USOIL

Meanwhile, traders believe that the conflict crippling Libya’s oil exports could soon be resolved, potentially increasing the supply of crude oil.

This poses a challenge for OPEC+, which last week seemed poised to move forward with the planned production increases for October. The group is now concerned about market volatility, according to one source, and a delay in the hikes is under discussion.

Recent data has heightened concerns about weaker-than-expected demand in China, the world’s largest crude importer, as well as declining consumption in the United States.

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ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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