OPEC+ is set to delay its planned increase in oil production, originally scheduled for January, according to sources familiar with the matter. The decision will be made during an online meeting later on Thursday, as the group seeks to provide additional support to the global oil market.
OPEC+, which accounts for around half of global oil production, had initially intended to unwind its production cuts through 2025. However, recent challenges, including a slowdown in global demand and rising output from countries outside the group, have hindered these plans and put pressure on oil prices.
Multiple sources within OPEC+ suggest that the most likely outcome of Thursday’s meeting will be a three-month extension of the current output cuts. Some sources even indicate that a longer extension could be considered. Despite the challenges facing the oil market, OPEC+ is aiming to stabilize prices and support demand, which has been impacted by various global economic factors.
The oil market has faced significant uncertainty in recent months, with concerns over weak demand growth and increased non-OPEC+ production. As OPEC+ countries work to balance the market, their decisions will have a lasting impact on global energy prices and the broader economic landscape. The outcome of Thursday’s meeting is crucial for shaping the oil market’s trajectory into the early months of 2025.
