The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) says it will put planned production increases on hold during the first quarter of 2026, responding to what it describes as a seasonal softening in oil demand and a cautious market environment.

The announcement came after a virtual meeting on Sunday involving eight core members: Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman.

In its statement, the alliance confirmed it will proceed with a 137,000 barrels-per-day (bpd) increase in December — matching the increments set for October and November — before suspending any further additions from January through March.

OPEC+ said the pause reflects typical first-quarter demand patterns and the need to avoid adding supply into an uncertain trading landscape.

“The eight participating countries reiterated that the 1.65 million barrels per day may be returned in part or in full, subject to evolving market conditions and in a gradual manner,” the group said.

The members also stressed the need to maintain flexibility in case markets shift abruptly. “They reaffirmed the importance of adopting a cautious approach and retaining full flexibility to continue pausing or reverse the additional voluntary production adjustments, including the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023.”

Throughout 2025, the alliance has leaned on what it considers “healthy market fundamentals” and low global inventories to justify successive increases.

On March 4, OPEC+ approved its first major production rise since 2022, authorising an April hike amid renewed pressure from U.S. President Donald Trump for lower oil prices. Later, on October 5, it endorsed another 137,000 bpd increase effective November 2025, pulled from the 1.65 million bpd voluntary cut introduced in April 2023.

Source: Business Day