05:03 AM EDT, 09/06/2024 (MT Newswires) -- Crude oil prices recovered slightly after the Organization of the Petroleum Exporting Countries said it will postpone its gradual withdrawal of output cuts by two months, but weak demand concerns remain, ANZ Bank said in a Friday note.

Instead of raising output by 180,000 barrels per day (b/d) in October, it will start the phaseout of voluntary output cuts in December. However, the completion date that the entire 2.2 million b/d will be brought back onto the market remains unchanged at December 2025, the bank noted.

The development was not a surprise considering the pressure oil prices have been under in recent months, ANZ Bank said. This could also signal that the producer group is still having difficulty complying with agreed-upon production cuts, with Iraq, Russia and Kazakhstan struggling in particular.

The move could also reduce the chance of the oil market moving into a surplus in the fourth quarter, the bank said. However, it is unlikely to completely ease concerns that have centered on weak demand in 2025.

U.S. crude inventories posted a 6.9-million-barrel reduction in the latest report week, which also provided price support, ANZ Bank said.

Brent crude gained 0.5% to US$73.02 per barrel and West Texas Intermediate crude rose 0.5% to US$69.47/b at last look early Friday.