On Thursday, OPEC+ is expected to postpone a planned increase in oil production that was initially due to begin in January, Reuters reported.
The decision to maintain current production levels is intended to provide additional support to the oil market. The group, responsible for about half the world’s oil supply, had planned to ease production cuts through 2025 but is now reconsidering in light of a slowdown in global demand and increased production from third countries.
The consortium’s plan to reverse production cuts has faced challenges from these market conditions, which have also put downward pressure on oil prices.
Accordingly, an extension of the current production cuts for another three months is the most likely outcome of the online meeting. However, there are indications that an even longer extension could be considered.
The deliberations within OPEC+ reflect the group’s ongoing efforts to balance oil supply with fluctuating global demand. The decision to postpone production increases is seen as a measure to stabilize the market, which is influenced by various economic factors.
Market participants are closely watching developments at the OPEC+ meeting as the group’s decisions have significant implications for global oil supply and pricing. The final outcome of the meeting, including the duration of the extension, will be determined by the consensus of member states.
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