Oil prices little changed after OPEC+ delays production increase

Oil prices were little changed Thursday after OPEC+ members agreed to delay crude production increases.

U.S. crude oil fell 24 cents, or 0.35%, to close at $68.30 per barrel. Brent crude futures pulled back 22 cents, or 0.3%, to settle at $72.09 per barrel.

Eight OPEC+ members led by Saudi Arabia and Russia will keep voluntary production cuts of 2.2 million barrels per day in place until the end of March 2025.

The cuts will then be gradually phased out on a monthly basis until the end of September 2026 to “support market stability,” according to a statement from the countries. The members will also keep a separate round of production cuts of 1.65 million bpd in place through December 2026.

OPEC+ members, consisting of the original OPEC states plus 10 that are loosely affiliated, including Russia, Mexico and Kazakhstan, are struggling to bring barrels back to the global market. That goal is stymied prices that are already under pressure from soft demand in China and strong production in the U.S.

The decision “makes crystal clear that the group is worried about both a potential supply glut and a lack of compliance with production targets among member countries,” said Mukesh Sahdev, global head of commodity markets at Rystad Energy.

The Paris-based International Energy Agency has warned that global supply will exceed demand by 1 million barrels per day next year, even if the current OPEC+ cuts remain in place.