OPEC+ weighing a delay in October's output increase: Reuters

Oil prices (CL=F, BZ=F) are lower as Reuters reports that OPEC+ is discussing a delay in October's scheduled output increase. Yahoo Finance Senior Business Reporter Ines Ferré joins Morning Brief to discuss the news and how it is affecting the commodities market.

Ferré notes that oil prices were initially falling on reports that Libya production may come back online because there may be a solution to the nation's internal dispute. If production were to resume, more supply would become available, driving prices lower.

Because of these collapsing prices, OPEC+ is considering delaying the additional barrels scheduled for October. Gasoline prices (RB=F) are already reflecting these developments, and analysts predict it could fall to an average of $3 per gallon by the end of the year.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl

Video transcript

Oil prices are lower, giving up gains from earlier in the session.

Reuters reporting that OPEC Plus is discussing a delay in the next month's scheduled output increase here to discuss further.

We've got Yahoo finances and Nez Foray and there have been a ton of moves around oil, whether it be OPEC Plus this week or even the Libyan oil production here.

What's really having the more outsized impact?

Yeah, that's right.

And we saw oil really plunging yesterday and we can take a look at our Wi fi interactive because you can see that now oil is a flat year to date.

So it has erased all of the gains for this year when we're talking about wt I year to date.

You can see the chart there and Brent crude down 3% year to date.

So part of the reason why we have seen oil just plummeting recently is because of reports that that Libya production, that you just mentioned that that may come back online because there may be a solution to that internal dispute in Libya.

So you would see supply coming back online there and then you have these uh looming, this looming extra supply coming from OPEC Plus.

And now reports that OPEC Plus may be delaying uh adding on uh barrels uh in, in the fall because of these collapsing oil prices.

Uh An analyst just wrote to me this morning saying that he wouldn't be surprised if OPEC Plus delays.

That measure remember that those were voluntary cuts that were going to start to be rolled back in October and through 2025.

Well, because of these prices, OPEC plus may not have any other choice but to delay that, I do want to mention that gasoline futures, by the way have been at three years, three year lows, gas prices are at around March levels.

But gasoline really plunging and this analyst telling me that you could see gasoline prices going down to an average of $3 per gallon by the end of the year, there's already nine states that have a gallon uh uh at the prices at below three per gallon.

And then finally, I just want to mention what's been happening with some other commodities as well.

Gold holding up at around the 2520 level and copper stabilizing this morning after yesterday, it was down more than 2%.

Goldman Sachs cutting its forecast on copper for 2025 citing weak demand from China guys.

All right.

And thats very thanks so much as always for joining us.

We appreciate it.