The Opec+ ‘Group of Eight’ has deferred the planned easing of 2.2mn b/d of voluntary production cuts from October to December. The 5 September announcement came amid a rough week for oil markets, with Brent having closed at $72.70 the previous day, its lowest since June 2023, amid renewed concerns over Chinese demand and prospects of a return of Libyan production.
Few doubt the connection between the price rout and the Group of Eight’s decision to deviate from the roadmap laid out in June at the last possible minute, especially as expectations as recently as last week were that the first phase of production increases was set to go ahead as planned (MEES, 30 August). One source notes the decision “means Opec+ admits that the oil market is weak,” although a delegate says the recent price moves don’t reflect the underlying market fundamentals. (CONTINUED - 1103 WORDS)
