The OPEC+ alliance has decided to delay unwinding several formal and voluntary oil production cuts, extending them into 2026 as global oil demand remains underwhelming, according to sources and internal documents.
Previously, OPEC+ had planned to restrict production to 39.725 million barrels per day (bpd) only through 2025. Now, this quota will remain in place until the end of 2026, reflecting a cautious approach to managing supply.
Eight member countries will also extend a voluntary 2.2 million bpd production reduction through the first quarter of 2026. Incremental increases are set to begin between April and September of that year. Additionally, the rollback of a separate 1.7 million bpd cut has been postponed until the end of 2026, marking another shift in the alliance’s output strategy.
Despite these measures, oil prices have struggled to find upward momentum. Brent crude futures and WTI futures were trading flat as of Thursday afternoon, underscoring persistent market concerns over lackluster demand.
Analysts attribute the subdued price environment to a weak global demand backdrop and geopolitical uncertainties, including the potential impact of policy shifts under the incoming U.S. administration. President-elect Donald Trump has campaigned on promises to bolster U.S. oil production, which could add further supply pressure.
Capital Economics analysts noted that while OPEC+’s decision to delay production increases provides some breathing room, the alliance could face similar challenges soon. “The fundamentals for oil prices remain weak, and the risks to prices are skewed to the downside,” they said in a note.
As the group navigates an evolving energy landscape, questions remain about how effectively it can stabilize the market amid geopolitical tensions and economic uncertainties.
