OPEC+ delays oil production increase to avoid market oversupply

Shafaq News/ On Thursday, OPEC+ announced the postponement of its planned oil production increase, initially scheduled for early January, by three months to April 2025, marking the third consecutive delay, aimed at preventing a significant drop in prices amid an oversupplied global market.

In a statement, OPEC+ — which includes OPEC member countries and key allies, notably Russia — stated that the group would extend its additional voluntary production adjustments of 2.2 million bpd, announced in November 2023, until the end of March 2025.

The statement added that these additional voluntary adjustments of 2.2 million bpd would be reintroduced to the market gradually every month until the end of September 2026, "to support market stability." The group noted, "This monthly increase can be temporarily halted or reversed depending on market conditions."

The alliance had initially planned to increase production by 180,000 bpd in January. According to the latest decision, these increases will now commence in April.

Furthermore, the coalition decided to extend the additional voluntary adjustments of 1.65 million bpd, announced in April 2023, until the end of December 2026, instead of December 2025.