The hydrocarbon market is once again facing turbulence! According to Reuters, citing informed sources, OPEC+ plans to go ahead with its scheduled increase in oil production in October. This decision is driven by supply disruptions in Libya and potential production cuts due to weak demand. However, experts warn that such a strategy could have a negative impact on the global oil market. 

Unfulfilled expectations that the alliance would revise its output plans in light of current conditions dragged oil prices sharply lower. As a result, Brent crude oil futures lost 2% to settle at the $77 per barrel mark. 

As noted by Reuters, eight OPEC+ members are set to boost production by 180,000 barrels per day in October. This move is part of the alliance’s strategy to scale back its production cuts of 2.2 million barrels per day while keeping other cuts in effect through the end of 2025.

A slowdown in demand growth, particularly in China, has weighed on oil prices and led some analysts to question whether OPEC+ will indeed increase production next month.

According to the news agency, the current plan to increase output remains in place due to tighter market conditions following the loss of Libyan production. As market expectations for a Federal Reserve interest rate cut rise, some analysts believe that this could stimulate economic growth.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said that OPEC+ could suspend or reverse oil production hikes in case of insufficiently robust market conditions. Key issues facing the hydrocarbon market are expected to be addressed at a meeting of the Joint Ministerial Monitoring Committee, which brings together alliance representatives and senior ministers, scheduled for October 2.