In its latest meeting, OPEC+ delayed the reversal of its oil output cuts until the end of March 2025 and extended additional voluntary cuts until the end of December 2026 due to weak demand and rising production outside the group. OPEC+ produces around half of the world’s oil. The group has been planning to start raising output since October 2024 but lower global demand and rising output elsewhere pushed it to postpone the plans on several occasions.
Output cuts to remain until December 2026
The Organization of the Petroleum Exporting Countries and allies like Russia said in its latest statement that “countries will extend their additional voluntary adjustments of 2.2 million barrels per day, that were announced in November 2023, until the end of March 2025.
The statement added that the group will gradually phase out the 2.2 million barrels per day adjustments on a monthly basis until the end of September 2026 to support market stability.
In addition, the group decided to extend the additional voluntary adjustments of 1.65 million barrels per day that it announced in April 2023, until the end of December 2026. OPEC+ also agreed to allow the UAE to raise output by 300,000 barrels per day gradually from April until the end of September 2026.
Brent crude trades lower
Despite the group’s efforts in limiting supply, global oil benchmark Brent crude has mostly stayed in a $70-$80 per barrel range this year. OPEC+ members are cutting 5.86 million barrels per day of output or about 5.7 percent of global demand, a decision they took in 2022 to support the crude market.
Today, Brent crude futures for February delivery fell by 0.4 percent to $71.80 a barrel, while West Texas Intermediate (WTI) crude futures also dropped by 0.4 percent, settling at $67.67 a barrel by 20:57 ET (01:57 GMT). Both contracts were on track to finish the week with minimal changes.
The cuts include 2 million barrels per day by the whole group, 1.65 million barrels per day of first-stage voluntary cuts by eight members, and another 2.2 million of second-stage voluntary cuts by the same eight members.
Read: Oil prices decline as OPEC+ prolongs supply cuts
Market focus shifts to Trump’s policies
The oil market will now shift its focus to U.S. President-elect Donald Trump who could impose new sanctions on Iran and tariffs on China. However, he has pledged an end to the war in Ukraine, reducing risks to crude supplies and potentially impacting their prices. During his previous term as President, Trump criticized OPEC+ for high oil prices, asking Saudi Arabia to raise its production.
The group will next meet on May 28, 2025.
