- OPEC+ will maintain a production pause in the first quarter to manage supply levels
- Saudi Arabia and key members confirmed the three-month supply halt in a private meeting
- The pause follows rapid production increases but market surplus is expected in early 2026
OPEC+ will stick with plans to pause production increases during the first quarter, delegates said, amid growing signs of a surplus in global oil markets.
Key members led by Saudi Arabia confirmed the three-month supply pause — first announced at the start of this month — during a video conference on Sunday, according to the delegates, who asked not to be identified as the talks are private.
While the hiatus indicates some caution by the Organization of the Petroleum Exporting Countries and its partners after they rapidly revived oil production earlier this year, it still leaves world markets on track for a significant excess in early 2026, which is likely to put further pressure on prices.
Oil futures have declined 15% this year to trade near $63 a barrel in London, as booming supply from the Americas in tandem with the OPEC+ hike exceeds demand growth. The International Energy Agency in Paris predicts a record glut in 2026, while Goldman Sachs Group Inc. and JPMorgan Chase & Co. see futures heading lower.
Freezing production for three months buys OPEC+ some time while it assesses heightened geopolitical risks to supplies from members, as well as renewed efforts to end the war in Ukraine.
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