OPEC Halts Planned Output Increase Amid Price Rout

Summary:

OPEC postponed plans to start unwinding production cuts from October 1 to December 1 in a bid to help stem the sharp decline in oil prices since late August, but the market shrugged off the news and remained squarely focused on overwhelming bearish fundamentals. The delay of just two months appears very modest when measured against the group’s increasingly tenuous longer-term plan to gradually ramp up production by 2.2 million b/d by the end of next year. OPEC has deftly managed crude supply since the pandemic, but more challenging decisions await.

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