By Ahmad Ghaddar, Alex Lawler and Olesya Astakhova
LONDON/MOSCOW (Reuters) – OPEC+ will press ahead with a planned increase in oil production from October as Libyan outages and promised cuts by some members to offset overproduction counter the impact of sluggish demand, six sources from the producer group told Reuters .
Eight OPEC+ members will increase production by 180,000 barrels per day in October, as part of a plan to unwind their latest output cuts of 2.2 million barrels per day, with other cuts remaining in place until the end of 2025.
A slowdown in demand growth, particularly in China, has weighed on oil prices and left some analysts doubtful whether the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, will follow through with the hike in October.
But the six OPEC+ sources told Reuters the plan to increase production remains in place as the loss of Libyan output tightens the market and hopes grow that the US Federal Reserve will cut interest rates in mid-September.
OPEC, the Saudi government communications agency and the office of Russian Deputy Prime Minister Alexander Novak did not immediately respond to requests for comment.
“There are many uncertainties about demand, but there is also hope that the Fed’s rate cut will stimulate economic growth,” one of the sources said.
Prices fell by about $1 on Friday, trading at just under $79 a barrel by 1341 GMT.
OPEC had previously said it could pause or reverse production increases if it decides the market is not strong enough.
Two of the sources said future production increases will be decided on a month-to-month basis.
OPEC+ has no formal talks planned until top ministers on a panel called the Joint Ministerial Monitoring Committee meet on October 2. The JMMC can make recommendations to the broader OPEC+ group.
The planned increase for October is just a fraction of the 700,000 barrels per day of offline Libyan oil production and the offset cuts that Iraq, Kazakhstan and Russia have pledged.
