OPEC+ Delays Oil Output Hike Amid Slack Demand

OPEC+ has postponed plans to increase oil production to April 2025, with complete unwinding of cuts now set for end-2026. This decision responds to sluggish global demand and rising output from non-member countries.

OPEC+ has decided to delay its planned oil output increase originally set for January 2025 to April, pushing the full reversal of production cuts to the end of 2026, according to sources within the group. This strategic move comes as the organization grapples with sluggish global demand and mounting production levels from non-member countries.

The group, which includes the Organization of the Petroleum Exporting Countries and allies like Russia, commenced online discussions on Thursday morning to address its production strategy. During these discussions, members reiterated their commitment to supporting oil markets despite global oil benchmark Brent crude remaining within the $70 to $80 range for most of the year.

As it stands, OPEC+ members are withholding 5.86 million barrels per day, approximately 5.7% of global demand, to stabilize the market. The agreement to extend phase one and phase two cuts by 2 million and 1.65 million barrels per day respectively till the end of 2026, and the partial unrolling of 2.2 million barrels of cuts from April 2025, highlights the group's careful balancing act.

(With inputs from agencies.)