OPEC+ is set to convene online on Thursday to deliberate a further delay in its planned revival of oil production, a move driven by persistently low crude prices and market volatility. Led by Saudi Arabia and Russia, the alliance has been working on an agreement to defer a sequence of output increases initially scheduled to begin in January with a daily hike of 180,000 barrels.
The decision follows two previous delays, attributed to declining demand in China and excess supply from the Americas, which have collectively exerted downward pressure on oil prices. Brent futures have dropped approximately 18% since July, trading near $73 per barrel, leaving OPEC+ members wary of exacerbating the situation by ramping up production.
This latest meeting builds on OPEC+’s June announcement of a road map to restore output halted since 2022. The plan aimed to add 2.2 million barrels per day over a year in monthly increments. However, concerns over a potential supply glut in 2025 have disrupted these plans and sparked criticism from member states about the group’s long-term strategy.
Iran, a founding member of OPEC, has voiced its frustrations, with an official recently claiming that the group’s strategy to boost prices has inadvertently fueled rival supplies, undermining its goals. Meanwhile, Russia’s top oil executive, Igor Sechin, echoed these concerns, stating that the alliance’s policies have strengthened U.S. shale producers and reduced OPEC+’s share of the global oil market. Speaking at the Verona Eurasian Economic Forum in the UAE, Sechin emphasized the need for strategic recalibration within the group.
As OPEC+ grapples with these challenges, its decisions in the coming weeks will significantly influence global energy markets, determining whether the group can maintain its relevance amid shifting geopolitical and economic landscapes.
