Eight members of the OPEC+ alliance decided to postpone planned increases in oil production by three months to October 2026. This decision comes as a response to weaker-than-expected demand and increased production from non-allied countries, which could keep oil prices stagnant into next year.
FRANKFURT, Germany — Eight members of the OPEC+ alliance of oil exporting countries decided Thursday to put off increasing oil production as they face weaker than expected demand and competing production from non-allied countries — factors that could keep oil prices stagnant into next year.
Oil prices have been slack due to weaker than expected demand from China as well as increased production from countries like Brazil and Argentina that aren’t in OPEC+. OPEC+, which includes Saudi Arabia as the dominant member of the OPEC producers' cartel, and Russia as the leading non-OPEC member in the 23-country alliance, is holding an online meeting over whether to put off production increases that are scheduled to take effect Jan. 1.
The Saudis need oil revenue to carry out Crown Prince Mohammed Bin Salman’s ambitious plans to diversify his country’s economy, including the development of Neom, a $500 billion futuristic city in the desert. For Russia, oil export revenues are a key pillar of state finances and funding for the war against Ukraine. Holding back production risks losing market share. Yet increasing production and sales could lower prices in a global economy that analysts say is already well supplied with oil.
OPEC has cut its forecast for 2025 demand growth to 1.54 million barrels per day, from 1.85 million barrels per day in July. That is at the high end of estimates compared to those from the International Energy Agency at 990,000 barrels per day, U.S. Energy Information Administration at 1.22 million and energy intelligence firm Rystad Energy at 1.1 million.
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