OPEC+ Delays Oil Output Rise Amid Global Challenges

OPEC+ has postponed the increase in oil output for three months and extended the full unwinding of cuts to the end of 2026 due to weak demand and increased production outside the group. The decision reflects the group's strategy amid significant global economic shifts and geopolitical tensions.

OPEC+, the influential alliance comprising the Organization of the Petroleum Exporting Countries and key allies including Russia, announced on Thursday the postponement of its planned oil output rise by three months to April 2025. The full unwinding of production cuts has also been extended by a year, up to the end of 2026, attributed to weak demand and surging production outside the bloc.

This delay signifies the group's cautious approach in stabilizing oil prices, which have hovered mostly between $70 to $80 per barrel this year. The decision comes despite the group maintaining supply cuts, influencing Brent crude trading to near $72 a barrel. The postponement shifts market attention to geopolitical events, including potential actions by the U.S. administration, which could impact global oil dynamics.

OPEC+ has made a series of strategic cuts to support the market since 2022, withholding 5.86 million barrels per day, equating to approximately 5.7% of global demand. The group's latest agreement extends these cuts and modifies previous plans to unwind certain reductions, marking a continued effort to navigate a complex global economic landscape.

(With inputs from agencies.)