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.
The OPEC+ members decided at an online meeting to postpone by three months production increases that had been scheduled to take effect Jan. 1. The plan had been to start gradually restoring 2.2 million barrels per day over the course of 2025. That process will now be pushed back until October 2026, Reuters reported.
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+.
Among the beneficiaries of the current state of the oil market are US motorists, who have seen gasoline prices fall to their lowest in 2 1/2 years to near $3 a gallon.
