OPEC+ Delays Oil Output Hike, Signaling Market Support Strategy

In a bid to check a relapse of the volatility of the global oil market, OPEC+ has decided to suspend the planned production hike that was expected in January. The group that regulates around 50% of the global oil output will prolong the current output reductions when they convene for an online meeting on Thursday, several sources participating in the talks cited. 

This decision has been taken due to a low demand for oil internationally and an increased production level by other countries apart from the OPEC which is still a negative pressure on the price of oil in 2024.

The action of the oil cartel demonstrated to the world that the supply of energy in the world is being very carefully managed. OPEC+ members are currently holding production of 5.86 million barrels per day or about 5.7% of demand. 

That a planned marginal increase in production by 180,000 barrels per day has been moved away from October shows that the group is keen on the stability of the prices.