OPEC+ Revises Oil Production Strategy Amid Weak Demand

OPEC+ has deferred the start of an oil production increase to April 2025, extending cuts till the end of 2026 due to weak demand. Eight members, including major producers like Saudi Arabia and Russia, agreed to voluntary production cuts totaling 5.85 million bpd to stabilize global markets.

In a strategic move to adjust to the changing dynamics of global oil demand, OPEC+ has decided to delay its planned increase in oil production until April 2025. The decision, made at the group's meeting on December 5, aims to address the current weak demand outlook and burgeoning production levels outside the bloc.

The coalition, comprising both OPEC members and allied countries, has been actively reducing output by 5.85 million barrels per day, accounting for approximately 5.7% of global demand. As of the latest agreement, these cuts have been extended by a year until the end of 2026, with an emphasis on stabilizing the oil markets.

Specifically, eight member nations, including Algeria, Iraq, and Russia, continue to implement voluntary cuts. The United Arab Emirates has been granted a gradual production increase of 300,000 bpd from April 2025, reflecting the nuanced approach OPEC+ is adopting to balance the market dynamics.

(With inputs from agencies.)