World News
Eight OPEC+ Members Agree on Smaller October Production Hike
Eight OPEC+ members have agreed to increase oil production by 137,000 b/d in October from September’s level, which is lower than that of previous months.
Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman, which had previously implemented voluntary cuts beyond OPEC+ targets, confirmed the move during a virtual meeting on Sunday, according to an OPEC statement.
The October increase was smaller compared to the monthly increases of 547,000-548,000 b/d in September and August.
The Sunday agreement also marks the start of unwinding a second round of cuts - about 1.65 million bpd from eight members - more than a year earlier than planned, Reuters reported on Sunday.
Since April, the eight members have already fully rolled back the first 2.5 million b/d of reductions.
Daniel Hynes, senior commodity strategist at ANZ Bank, says the lower production hike for October indicates that some members are struggling to increase output.
“So far, OPEC output increases have been coming in well below expectations," Hynes said in a LinkedIn post on Monday.
“Production has risen only 0.6mb/d since March, versus the accelerated schedule of 1.9kb/d.
"This is likely due to a lack of investment within the group.”
ICE November Brent futures stood at $66.29/bl as of 5:32 AM in London on Monday, up by $0.79/bl from Friday's close.
The eight members will meet again on October 5.
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