Eight members of OPEC+, which includes the Organization of the Petroleum Exporting Countries along with Russia and other allies, were scheduled to boost production in December as part of a strategy to gradually lift the most recent output restrictions, which involve a reduction of 2.2 million barrels per day (bpd).
However, concerns regarding weak demand and economic indicators prompted discussions within the group about the implications of increasing supply, leading to the decision to delay the hike after consultations among ministers.
The eight nations have opted to maintain the 2.2 million bpd cut for an additional month, extending it until the end of December, according to an OPEC statement. The group also emphasized their collective commitment to achieving full compliance with their output targets.
On Friday, oil prices settled just above $73 per barrel, partly buoyed by the anticipated delay in the OPEC+ output increase. Nevertheless, Brent crude remains close to its lowest levels of the year, which fell below $69 in September.
Previously, OPEC+ had postponed the increase from October due to declining prices, weak demand, and rising supply levels. Additionally, a reduction in investor anxiety regarding potential disruptions to oil output in the Middle East has also impacted prices.
The planned December increase was set to be 180,000 bpd, a minor fraction of the total 5.86 million bpd that OPEC+ is currently withholding, representing approximately 5.7% of global demand. These cuts have been implemented in various phases since 2022 to stabilize the market.