Oil prices rise amid OPEC+ discussions, market volatility
(MENAFN) Oil prices saw a modest increase on Wednesday following a period of declines, as OPEC+ sources revealed discussions about potentially postponing a planned output increase set for October. By 11:44 GMT, brent crude futures had risen by 45 cents, or 0.6 percent, reaching USD74.20, while U.S. West Texas Intermediate (WTI) crude futures were up 55 cents, or 0.8 percent, settling at USD70.89. Both benchmarks had experienced a drop of one dollar earlier in the day but managed to recover some losses incurred during the previous session, when prices had fallen over four percent.
The rebound in oil prices comes after weak economic data from the United States and China, which has exacerbated fears of a slowing global economy and diminished oil demand. The data have contributed to a broader market pullback, as investors reassess their outlook. Traders are also hopeful that the end of a conflict that has disrupted Libyan oil exports might bring additional crude supplies to the market, potentially easing some of the current supply constraints.
OPEC+ had previously appeared poised to increase production by 180,000 barrels per day starting in October. However, heightened market volatility, stemming from the closure of Libyan oil facilities and weakening demand expectations, has prompted the group to reconsider its plans. Analysts at Citi have warned that if OPEC+ fails to extend current production cuts indefinitely, the market could lose confidence in the group's ability to maintain oil prices above USD70 per barrel. Additionally, recent data from China, the world's largest oil importer, indicated a decline in manufacturing activity and slower growth in new home prices, while the release of U.S. inventory data was delayed due to the Labor Day holiday.
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