Oil Futures Surge as OPEC+ Considers Delaying Output Hike | Investing.com
In a positive turn of events, U.S. oil futures saw a significant rise on Wednesday amidst hopes that major producers will continue to limit supply to support the market. At 07:55 EST, crude oil futures were up by 1% at $71.02 a barrel, with another climb of 0.6% at $74.19 a barrel.
The Organization of Petroleum Exporting Countries and allies, known as OPEC+, are currently in discussions to potentially delay a planned output increase next month. This comes as eight OPEC+ members were set to raise output by 180,000 barrels per day in October. Market volatility from oil facility shutdowns in Libya and a weak demand outlook have prompted concerns within the group, with a delay being seen as highly possible.
Furthermore, hopes for a resolution in Libya's political deadlock have also contributed to the positive momentum. Legislative bodies in Libya have agreed to appoint a new central bank governor within 30 days, potentially ending the dispute that has disrupted the country's oil exports.
Despite these positive developments, concerns about demand growth continue to weigh on the market. Weak U.S. manufacturing activity data and fears of a global economic slowdown have kept traders on edge. The delay in the weekly U.S. inventory data release due to the Labor Day holiday has added to the uncertainty.
In conclusion, the potential delay in the output hike by OPEC+ and the resolution of the dispute in Libya are positive signs for the oil market. However, ongoing concerns about demand growth and economic slowdowns remain key factors to watch. Stay tuned for further updates on how these developments could impact your finances and investments.