A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC) during the United Nations climate change conference COP29, in Baku, Azerbaijan November 13, 2024.
Maxim Shemetov | Reuters
The OPEC+ oil producers’ alliance has postponed plans to unwind several formal and voluntary crude production cuts into 2026 amid a lukewarm outlook for global demand, according to delegate sources and internal documents.
The sources could only speak anonymously because of the sensitivity of talks.
Under its formal output strategy, the broader OPEC+ coalition is now restricting its combined production to 39.725 million barrels per day (bpd) until Dec. 31, 2026, after previously only applying this quota throughout 2025.
Eight OPEC+ members will now extend their 2.2 million-barrel-per day voluntary production decline into the first quarter, and will begin hiking production incrementally between April and September 2026. Several OPEC+ member will also be postponing the unwinding of a second 1.7-million-barrels-per-day cut until the end of next year. This latter production decline was previously only set to last through 2025.
Despite these sets of production trims and ongoing conflict threatening the hydrocarbon-rich Middle Eastern region, global oil prices have remained subdued for the better part of this year, under pressure from a tepid demand outlook.
Adding to geopolitical uncertainty is the imminent White House return of President-elect Donald Trump — who has led his electoral campaign on pledges to further unleash the output of the world’s largest oil producer.
This breaking news story is being updated.