The OPEC+ cartel has postponed plans to increase its %Oil production as global energy demand remains weak, especially in the key market of China.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) had been expected to unwind several crude oil production cuts in the coming year.
But those plans are now off-the-table, according to multiple media reports, as OPEC+ members, led by Saudi Arabia, reassess global oil demand for the year ahead and beyond.
OPEC+ has now extended its combined production of 39.725 million barrels of oil per day (bpd) until Dec. 31, 2026. Previously, the current quota was to expire at the end of 2025.
Eight OPEC+ members will now extend their 2.2 million-barrel-per day voluntary production decline until at least April 2026.
The delay in raising oil production comes as crude prices remain subdued amid tepid demand, notably in China, which is the world’s largest energy importer.
Adding to the current uncertainty is the return of president-elect Donald Trump, who has pledged to unleash American oil production.
On the election campaign trail this past summer, Trump promised to let U.S. oil and natural gas producers “drill, baby, drill.”
Brent crude oil, the international benchmark, is currently trading at $72.41 U.S. per barrel. West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading at $68.69 U.S. a barrel.
