OPEC+ Aligns Production Cuts to Navigate Weak Demand

OPEC+ is adjusting its oil production strategy, delaying planned output increases due to weak demand forecasts. Initially agreeing on deep production cuts until 2025, the group made changes allowing postponements. They continue cutting production by 5.86 million bpd, planning to gradually reduce cuts to 3.66 million bpd by 2025.

In response to a subdued oil demand outlook, OPEC+ is poised to adjust its production strategy at the December 5 meeting, deferring an anticipated increase in output into the next year.

The influential oil-producing group had previously agreed to deep cuts, extending these until 2025 in a complex deal reached in June. The arrangement was revised in October, allowing the group to delay increasing production by three months, now slated for early next year.

Currently, OPEC+ members are holding back 5.86 million barrels per day, approximately 5.7% of global demand, through various voluntary cuts. These include large-scale contributions from nations like Saudi Arabia and Russia, which will progressively scale down by 2025.

(With inputs from agencies.)