Oil prices rose more than 2 percent on Wednesday after Reuters reported that OPEC+ may delay oil production increases scheduled to be implemented in December by a month or more due to concerns about low oil demand and rising supplies.
Brent crude futures rose $1.41, or 2 percent, to $72.53 a barrel by 1236 GMT. US West Texas Intermediate crude futures rose $1.34, or 2 percent, to $68.55 a barrel.
OPEC+, a group of the Organization of Petroleum Exporting Countries and allies such as Russia, is due to raise output by 180,000 barrels a day in December. The group has cut output by 5.86 million bpd, equivalent to about 5.7 percent of global oil demand.
“OPEC+ has always advised that ending voluntary supply cuts will depend on market conditions,” said Harry Chilinguirian, head of research at Onyx Capital Group.
“Given weak macroeconomic realities, particularly in China, which have led to lower global demand growth estimates, it is not surprising that they are reconsidering the timing of their barrel returns,” Chilinguirian said.
A decision to postpone the hike could be taken as early as next week, two sources told Reuters.
OPEC+ is scheduled to meet on Dec. 1 to decide on its next policy steps.
