U.S. crude oil recovers from a nine-month low, trading close to $71 per barrel following a selloff.

• According to a report, there is a possibility that OPEC+ may postpone increasing production, resulting in slightly higher oil prices.
• Earlier in the session, the U.S. benchmark reached a nine-month low of $69.19 after falling more than 4% on Tuesday.
• The market is concerned that demand may decrease, causing supplies to increase and putting pressure on prices.

On Wednesday, U.S. crude oil experienced a gain of over 0.5%, climbing from its nine-month low, due to rumors that OPEC+ might postpone its scheduled October production increase.

Earlier in the session, the U.S. benchmark reached a low of $69.19, the lowest level since December 13, after falling more than 4% on Tuesday. Additionally, both the U.S. crude and global benchmark Brent have wiped out all gains for 2024.

Here are Wednesday's energy prices:

• The October contract for crude oil is $70.72 per barrel, representing a 38 cent increase, or 0.55%. To date, the US has experienced a 1% decline in crude oil prices.
• The November contract price for oil is $74.01 per barrel, which represents a 26 cent increase or 0.35% rise. Despite this, the global benchmark has decreased by 3.8% year to date.
• Gasoline prices in October remained relatively stable at $1.98 per gallon. Year-to-date, there has been a slight decrease in gasoline demand, resulting in a 6% pullback.
• The October contract price for gas is $2.22 per thousand cubic feet, which is a 2-cent increase or 1.04% higher. However, year to date, gas prices have decreased by 11.7%.

The S&P 500 experienced its worst day since early August, while oil prices were affected by weak manufacturing activity in the U.S. and China.

Plans to increase oil production in October by OPEC+ and a potential resolution to the political dispute in Libya could put an end to disruptions in North African oil supplies.

On Friday, reports indicated that eight OPEC+ members planned to increase production by 180,000 barrels per day in October. However, the group had made it clear in June that the decision could be reversed based on market conditions.

Giovanni Staunovo, a strategist at UBS, stated in a Wednesday note that the market's reaction to these supply stories reveals the current weakness of sentiment in the oil market.

On Wednesday, three sources told Reuters that the group may now delay the October production increase.

"Staunovo wrote that we shouldn't interpret the monthly production increases reportedly as significant, as prices are currently low and there's a possibility of a pause in those increases."

Despite the uncertainty about the deal in Libya, the analyst stated that the market remains undersupplied due to declining oil inventories since May, despite weak demand in China.

"Therefore, we advise investors to take advantage of the market's pessimism and buy Brent oil at $80 per barrel in the near future," Staunovo stated.