OPEC+ has confirmed plans to halt production increases during the first quarter of the year, as signs of a surplus emerge in the global oil market, according to delegates who participated in a private video conference on Sunday. Key members, including Saudi Arabia, reaffirmed the three-month production pause initially announced at the beginning of the month.
This decision reflects a cautious approach by the Organization of the Petroleum Exporting Countries (OPEC) and its partners, especially after significantly ramping up oil production earlier this year. However, it also positions world markets for a considerable surplus by early 2026, which is likely to exert downward pressure on oil prices.
Oil futures have experienced a 15 percent decline this year, trading around $63 a barrel in London. The surge in supply from the Americas, combined with the OPEC+ production increase, has outstripped demand growth. The International Energy Agency (IEA) in Paris forecasts a record surplus in 2026, while major financial institutions, including Goldman Sachs Group Inc. and JPMorgan Chase & Co., predict a further drop in futures.
The three-month production freeze provides OPEC+ with additional time to evaluate increasing geopolitical risks that may affect supplies from member states, alongside renewed efforts to resolve the conflict in Ukraine.
More details can be found on bloomberg.com.
Published on November 30, 2025.
