OPEC+ postpones oil production increase amid demand concerns
The OPEC+ alliance countries will decide at a virtual meeting whether to end restricted oil production or extend supply cuts to prevent a drop in crude prices, according to CNBC.
"Eight OPEC+ members will now extend their 2.2 million-barrel-per day voluntary production decline into the first quarter, and will begin hiking production incrementally between April and September 2026," CNBC reported, citing two sources from the cartel.
Delegates, who remain anonymous due to "the sensitivity of talks," stated that the decision is motivated by concerns about weak global oil demand prospects.
Previously, an increase in oil supply from OPEC+ was planned to start in January 2025, increasing by 180,000 barrels per day. The group has been restricting these supplies since the end of 2022 to maintain higher oil prices on global markets.
After CNBC reported leaks about the alliance's decision, oil prices dropped. "Brent crude futures gained 46 cents, or 0.64%, to $72.77 per barrel," CNBC reported.
Members of OPEC+ include Algeria, Angola, Saudi Arabia, Ecuador, Iraq, Iran, Qatar, Kuwait, Libya, Nigeria, Venezuela, and the United Arab Emirates, as well as allies like Russia.
U.S. sanctions on oil supplies from Iran
Meanwhile, the U.S. has imposed additional sanctions on oil supplies from Iran - targeting 35 entities and vessels that play a crucial role in the "secret" fleet illegally transporting Iranian oil to foreign markets.
The U.S. State Department announced that the new wave of sanctions targets tankers and ship management companies that are part of the network transporting Iranian oil abroad using false documentation, manipulating ship tracking systems, and constantly changing ship names and flags.
The entities managing the sanctioned ships are based in the United Arab Emirates, China, India, Hong Kong, the Marshall Islands, and Panama.
