Sources Indicate OPEC+ Plans to Further Increase Oil Production Beginning in October

• According to sources, an agreement in principle has been reached to increase production.
• Sources indicate that output is expected to rise by at least 135,000 barrels per day in October.
• Eight OPEC+ member states are scheduled to convene on Sunday.
• Discussions are centered on the gradual reversal of the previously implemented 1.65 million barrels per day reduction.

OPEC+ is expected to announce an increase in oil production on Sunday, although the increment will likely be smaller than in recent months amid concerns of slowing global demand. Since April, the group has reversed earlier output cuts, raising quotas by approximately 2.5 million barrels per day—equivalent to about 2.4% of global demand—in response to pressure to moderate prices. Despite these measures, oil prices remain elevated at around $66 per barrel.

The organization is considering accelerating the unwinding of its 1.65 million barrels per day reduction, more than a year ahead of schedule, with discussions centered on a phased monthly increase. An agreement in principle has been reached to raise output by at least 135,000 barrels per day beginning in October, though projections suggest the increase could range between 200,000 and 350,000 barrels per day.

In August, OPEC+ approved a production increase of 547,000 barrels per day for September. On Friday, Brent crude settled at $65.50 per barrel, reflecting a 2.2% decline attributed to a weaker U.S. jobs report and expectations of further output increases, though still above April’s low of nearly $58 per barrel.

Source: Reuters