Rumor has it that OPEC+ production will increase as planned in October, and the market reaction was intense: oil prices fell sharply in the short term

The Zhitong Finance App learned that six sources from the Organization of Petroleum Exporting Countries (OPEC) revealed that OPEC+ plans to increase oil production according to the original plan starting in October. The decision was due to supply disruptions in Libya and promises by some member states to reduce excess production. These factors combined to offset the impact of sluggish demand.

The eight OPEC+ member states intend to increase oil production by 180,000 barrels per day in October. This is part of their plan to phase out the latest 2.2 million b/d reduction measures while continuing other production cuts until the end of 2025.

Despite slowing demand growth, putting pressure on oil prices, some analysts are skeptical about whether OPEC+ will continue to increase production in October. However, due to tight market supply due to the decline in production in Libya, and the general expectation that the Federal Reserve will cut interest rates in mid-September, these factors have enabled the plan to increase production to be maintained.

A source said, “Although there is a lot of uncertainty on the demand side, the Fed's interest rate cut is expected to boost economic growth, which gives us some hope.”

Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman has previously stated that OPEC+ may suspend or withdraw plans to increase production if it believes the market is not strong enough.

OPEC+ will not schedule any formal meetings until the ministers of member states of the Joint Ministerial Monitoring Committee (JMMC) meet on October 2. JMMC can make recommendations to the wider OPEC+ organization.

Currently, OPEC, the Saudi Government Communications Office, and Russian Deputy Prime Minister Alexander Novak's office have yet to immediately respond to requests for comment.

Affected by this news, crude oil prices fell sharply in the short term. The price of WTI crude oil once plummeted by 3%. Currently, the price is 74.09 US dollars/barrel; Brent crude oil is down 1.95%, and the price is 77.28 US dollars/barrel.