OPEC-plus extends production cuts to support prices
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The news: OPEC+ delayed its planned oil production hikes by three months, with increases now set to start in April 2025 and be phased in gradually over 18 months.
The numbers: The agreement pushes the full unwinding of OPEC+'s voluntary production cuts to September 2026, a year later than originally scheduled.
The UAE also agreed to postpone an increase of 300,000 barrels a day to its quota to April 2025.
Analysts estimate OPEC+ output in 2025 will be 800,000 daily barrels below earlier expectations if members comply with the quotas, according to The Financial Times.
Brent crude was down 0.1% at USD72.26 after the announcement.
The context: The decision comes as OPEC+ contends with weak demand, surging non-OPEC supply and concerns about a potential surplus in 2025.
Analysts called the move prudent, noting the potential impact of geopolitical risks and US President-elect Donald Trump’s policies.
OPEC+ plans to reassess market conditions at its next meeting on 28 May.
The sources: OPEC, Reuters, The Financial Times
