OPEC+ has postponed plans to ease its formal and voluntary crude production cuts until 2026, citing a subdued outlook for global oil demand.
Internal documents and sources familiar with the discussions indicate the decision aims to address market uncertainties and maintain price stability.
In its formal output strategy, OPEC+ has extended its production cap of 39.725 million barrels per day through December 31, 2026, lengthening a quota originally set to expire in 2025.
Eight OPEC+ members will extend their voluntary production cut of 2.2 million barrels per day into the first quarter of 2026, with plans to gradually increase output between April and September 2026.
Additionally, the unwinding of a separate 1.7-million-barrel-per-day cut will be delayed until the end of 2026, instead of concluding in 2025 as previously planned.
Global oil prices have remained subdued this year due to weak demand expectations, despite production cuts by major producers and geopolitical risks in the Middle East.
Factors such as slower economic growth, concerns about a potential global recession, and the transition toward renewable energy have dampened demand projections, keeping prices under pressure.
This dynamic highlights the complex interplay between supply constraints and shifting demand patterns in the energy market.
