OPEC+ has postponed its planned December oil output increase by one month, citing weak demand from China and rising production from non-members.
The coalition will maintain current cuts through December to support market stability, as oil prices hover just above $73 a barrel ahead of an important policy meeting next month.
OPEC+ has decided to delay a planned increase in oil output for December due to weak demand, particularly from China, and rising supply from outside the group, which continues to exert pressure on oil prices.
Initially, eight members of OPEC+ planned to raise production by 180,000 barrels per day (bpd) in December as part of a strategy to unwind a previous cut of 2.2 million bpd.
However, concerns about sluggish demand and economic indicators led the group to reconsider.
Consequently, after discussions, OPEC+ announced the extension of the existing cut for another month, lasting until the end of December.
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As a result, oil prices closed just above £73 a barrel on Friday, bolstered by the news of the delay.
Nevertheless, they remain close to their lowest levels of the year.
Moreover, OPEC+ had previously postponed output increases due to falling prices and rising supplies, while easing investor concerns over potential disruptions to Middle Eastern oil production has also weighed on prices.
Furthermore, OPEC+ and Saudi Arabia have reiterated that their decisions are based on market fundamentals rather than specific price targets.
In addition, the remaining cuts of 3.66 million bpd will remain in place until the end of 2025.
Finally, OPEC+ ministers are scheduled to meet on December 1 to discuss policies for the upcoming year.
