OPEC+ Considers Delaying Oil Output Hike Amid Market Challenges

OPEC+ ministers held strategic discussions to address a potential delay in the planned oil output increase in response to weaker demand and price fluctuations. Key ministers from Saudi Arabia, Kazakhstan, and Russia emphasized the importance of commitment to production cuts, as analysts suggest the potential postponement of output hikes until April 2025.

Key OPEC+ ministers have convened talks ahead of the oil cartel's weekend meeting to set production policy. Sources within OPEC+ revealed discussions around possibly delaying an already planned oil output increase set for January.

Saudi Energy Minister Prince Abdulaziz bin Salman, Kazakh Energy Minister Almasadam Satkaliyev, and Russia's Deputy Prime Minister Alexander Novak engaged in telephonic talks, highlighting the importance of voluntary production cuts and adherence to agreements amid fluctuating global demand and rising non-OPEC output.

With global oil prices remaining volatile, Goldman Sachs anticipates extended production cuts into 2025. OPEC+ ministers reiterated the importance of compliance with agreed targets to stabilize the market and counteract persistent challenges.

(With inputs from agencies.)