Oil Prices Retreat As OPEC+ Discusses Delay In Production Hikes

Author: Michael Juliano | September 04, 2024 02:08pm

Oil prices fell on Wednesday after OPEC+ sources said that it was talking about holding back a plan to boost output in October due to concerns over demand and production possibly coming back to Libya.

Brent crude futures were down 53 cents, or 0.72% , to $73.20 as of 12:15 pm ET Wednesday.

U.S. West Texas Intermediate crude futures were down 57 cents, or 0.81%, to $69.77.

Both benchmarks had earlier lost $1 and then bounced back to gain $1 from Tuesday’s close, following the OPEC+ news.

A broader sell-off had seen prices for Brent crude futures drop as much as 11%, or about $9, in a little over a week to reach a low of $72.63 on Wednesday, Reuters reported. Benchmark prices fell more than 4% Tuesday.

Weak data from the U.S. and China had boosted forecasts of a weaker global economy and oil demand that triggered a broader decline in world markets.

Read Also: Brent Crude Under Pressure Amid Supply Expansion Concerns

At the same time, traders believed a dispute stopping Libyan oil exports may come to an end and therefore increase crude oil supply.

These factors have concerned OPEC+ over market volatility after the group planned to boost output in October, making it consider delaying the hikes.

China’s manufacturing activity fell to a six-month low in August as growth in new home prices cooled off, according to data released Saturday.

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

Reports from the American Petroleum Institute are due at 4:30 p.m. ET Wednesday and from the Energy Information Administration at 11 a.m. ET Thursday.

Price Action: Oil companies and exchange traded funds that hold their stocks trended downward into Wednesday’s early-afternoon trading.

• Exxon Mobil Corporation (NYSE:XOM) slipped 0.62% to $114.75
• Chevron Corporation (NYSE:CVX) declined 0.82% to $143.48
• Shell plc (NYSE:SHEL) fell 0.80% to $68.83
• United States Oil Fund LP (NYSE:USO) slid 1.31% to $70.16
• ProShares Ultra Bloomberg Crude Oil (NYSE:UCO) lost 2.33% to $25.58
• United States Brent Oil Fund LP (NYSE:BNO) declined 1.11% to $28.40

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Photo: Shutterstock

Posted In: BNO CVX SHEL UCO USO XOM