OPEC+ extends oil cuts amid weak demand, US tightens Iran sanctions
The countries of the OPEC+ alliance are set to decide in a virtual meeting whether to conclude the restricted oil production arrangement or continue the supply cuts to avert a decline in crude prices. The CNBC television service has reported leaks on this issue.
"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 within the cartel.
Delegates, who have chosen to remain anonymous due to "the sensitivity of talks," indicated that the rationale for this decision lies in concerns over weak global oil demand prospects.
Previously, an increase in oil supply from OPEC+ was scheduled to start in January 2025 by 180,000 barrels per day. The group has been restricting these supplies since late 2022 to sustain higher oil prices in global markets.
Following CNBC's report on the alliance's decision, oil prices decreased. "Brent crude futures gained 46 cents, or 0.64%, to $72.77 per barrel," according to the service.
OPEC+ members include Algeria, Angola, Saudi Arabia, Ecuador, Iraq, Iran, Qatar, Kuwait, Libya, Nigeria, Venezuela, the United Arab Emirates, and allies like the Russian Federation.
U.S. sanctions on oil supplies from Iran
In the meantime, the U.S. has imposed further sanctions on oil supplies from Iran, targeting 35 entities and vessels that play a vital role in the "secret" fleet illicitly transporting Iranian oil to foreign markets.
The U.S. State Department announced that the new wave of sanctions targets tankers and ship management companies involved in transporting Iranian oil abroad, using false documentation, manipulating ship tracking systems, and frequently changing ship names and flags.
The companies managing the ships affected by the U.S. sanctions are based in the United Arab Emirates, China, India, Hong Kong, the Marshall Islands, and Panama.
