Title: OPEC+ Delays Production Increase as Oil Prices Plunge, Raising Supply Concerns

In response to the recent steep decline in oil prices, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have decided to postpone plans to increase production by 180,000 barrels per day until December. This move comes as global markets remain worried about the balance of supply and demand in the face of mounting uncertainties.

The price of U.S. crude oil hit its lowest level since June 2023, putting it on track for its worst week in nearly a year. OPEC+'s failure to reassure the market about the global supply and demand situation has further intensified concerns. During the session, U.S. crude reached a low of $67.17, marking an 8% decline for the week - the largest since October. The Brent global benchmark has also seen a significant drop of 9.8% this week.

The decision to delay the production increase is aimed at addressing the market's fears of oversupply. The planned output hike would have brought approximately 2.2 million barrels per day back onto the market by the end of next year. This delay reflects the cautious approach of OPEC+ in ensuring a delicate balance between supply and demand.

Friday's closing energy prices reflected the ongoing volatility in the oil markets. The West Texas Intermediate October contract closed at $67.67 per barrel, down $1.48 or 2.1%, while the Brent November contract closed at $71.06 per barrel, down $1.63 or 2.2%. U.S. crude has fallen 5.6% year-to-date, while the global benchmark has declined by 7.8%.

The decline in oil demand from China, the world's largest crude importer, has added to concerns about oversupply. China's rapid transition to electric vehicles has led to a slowdown in oil consumption. As a result, major financial institutions such as Bank of America and Citi have revised their oil price forecasts downwards.

Bank of America has lowered its oil forecast for 2025 to $75 for Brent, down from $80 previously, and to $71 for the U.S. benchmark, down from $75. Citi anticipates that Brent prices will average in the $60 range next year as the market is expected to face a substantial surplus.

The market's reaction to this news will be closely monitored, as investors evaluate the impact on oil prices and anticipate potential opportunities for companies involved in the energy sector. The uncertainty around oil prices and the ongoing global transition towards cleaner energy sources continues to shape the future of the oil and gas industry.

As the situation unfolds, market analysts and experts will continue to track the latest developments in oil prices and the oil and gas industry. For the most up-to-date news and analysis, stay tuned to CNBC.com.

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