Major oil-producing countries, including Saudi Arabia and Russia, have delayed plans to increase production by at least four months, citing weak global demand and increased output from other nations.
The Organization of the Petroleum Exporting Countries (OPEC) had initially planned to start increasing production in January, but will now delay it until April. This is the third time OPEC has postponed its plan to raise output.
Experts say the decision reflects the market’s readiness for increased production, which was uncertain with Donald Trump’s presidency still looming. Additionally, January is typically a weak demand month due to refinery maintenance.
Oil prices remained steady on Thursday, trading at $72.44 per barrel. Analysts predict that OPEC will not begin increasing output until late next year, citing tepid global demand growth and increased production from countries like the US, Guyana, and Brazil.
OPEC’s decision comes as it struggles to navigate complex production agreements with varying targets and deadlines, which have left experts confused. The cartel has also extended a 1.7 million-barrel-per-day reduction package until December 2026.
Source: https://www.nytimes.com/2024/12/05/business/opec-plus-oil-production-delay.html