Oil prices rebound after extended tumble, as OPEC+ mulls delay to output increase

By Paul Carsten

LONDON (Reuters) -Oil prices rebounded on Wednesday from an extended sell-off, after sources from OPEC+ told Reuters the producer group was discussing delaying a planned output increase in October.

Brent crude futures rose 45 cents, or 0.6%, to $74.20 by 1144 GMT. U.S. West Texas Intermediate crude futures were up 55 cents, or 0.8%, at $70.89. Both benchmarks had earlier lost $1 and then bounced back to gain $1 from their Tuesday close, before settling at current levels.

A broader sell-off had seen prices for Brent crude futures tumble as much as 11%, or about $9, in a little over a week, hitting a low of $72.63 on Wednesday.

On Tuesday alone, benchmark prices plunged more than 4%.

Lacklustre data from the U.S. and China had deepened persistent expectations of a weaker global economy and oil demand, helping set off a broader decline in world markets.

Meanwhile, traders believed there could be an end in sight to a dispute halting Libyan oil exports, bringing more crude supply back online.

That posed a challenge for OPEC+, which last week looked set to proceed with planned output hikes in October. The production group is now concerned about the market volatility, one of the sources said, and a delay to the hikes is being discussed.

"If OPEC+ does not provide reassurance that current output cuts would be extended more indefinitely, then the market could lose faith in OPEC+ defending the $70/bbl level," Citi analysts wrote in a note.

Recent data releases fuelled wider concerns around weaker-than-expected demand from China, the world's biggest crude importer, and U.S. consumption taking a hit.

Chinese data on Saturday showed manufacturing activity sank to a six-month low in August, when growth in new home prices slowed.

Meanwhile in the U.S., Institute for Supply Management data on Tuesday showed manufacturing remained subdued.



Weekly U.S. inventory data has been delayed by Monday's Labor Day holiday. The report from the American Petroleum Institute is due at 4:30 p.m. EDT (2030 GMT) on Wednesday and data from the Energy Information Administration will be published at 11:00 a.m. EDT (1500 GMT) on Thursday.

U.S. crude oil and gasoline stockpiles were expected to have fallen last week, a preliminary Reuters poll showed. [EIA/S][API/S]

Source: Investing.com

Последние публикации
ME conflict remains at risk of escalation, oil and gold can help hedge risk
24.11.2024 - 11:00
Factbox-Takeaways from the COP29 climate summit in Azerbaijan
24.11.2024 - 04:00
Trump picks Brooke Rollins to be agriculture secretary
23.11.2024 - 23:00
Canada's Trudeau condemns violent protests as NATO meets in Montreal
23.11.2024 - 21:00
Trump expected to pick Brooke Rollins to be agriculture secretary, WSJ reports
23.11.2024 - 19:00
Citi simulates an increase of global oil prices to $120/bbl. Here's what happens
23.11.2024 - 12:00
Natural gas prices outlook for 2025
23.11.2024 - 11:00
Russia's claim of emissions in annexed Ukraine regions draws protests at COP29
23.11.2024 - 06:00
Oil prices settle up 1% at 2-week high as Ukraine war intensifies
22.11.2024 - 22:00
COP29 climate summit overruns as $250 billion draft deal stalls
22.11.2024 - 21:00
Oil prices climb 1% to two-week high as Ukraine war intensifies
22.11.2024 - 20:00
Oil prices edge up to 2-week high as Ukraine war intensifies
22.11.2024 - 19:00
COP29 climate summit overruns as $250 billion draft deal flops
22.11.2024 - 17:00
Indian opposition parties deny any wrongdoing linked to Adani bribery allegations
22.11.2024 - 17:00
Oil prices head for weekly gain on Russia-Ukraine tensions
22.11.2024 - 16:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?