OPEC+ Defers Oil Output Increase Amid Global Shifts

OPEC+ has delayed its plan to increase oil output, extending output cuts until the end of 2026 due to weak demand and increased production outside the group. Despite these cuts, oil prices remain low, with global focus shifting towards potential impacts of U.S. policy changes under President-elect Donald Trump.

In a significant move, OPEC+ has decided to postpone its plan to hike oil output by three months, now targeting an April start, while also extending the full unwinding of production cuts until the end of 2026. The decision comes as global oil demand weakens and production surges outside the group.

Oil prices have been stable against expectations, with Brent crude largely trading between $70 and $80 per barrel. The postponement reflects the complex global dynamics at play, including uncertain geopolitics with the upcoming U.S. administration under President-elect Donald Trump, which could influence the market further through sanctions and tariffs.

OPEC+ continues to withhold 5.86 million barrels per day from the market, a strategic move to stabilize prices amid supply fluctuations. This includes significant voluntary cuts by key members, underscoring the group's cautious approach in responding to global market signals.

(With inputs from agencies.)