OPEC+ Slows Oil Output Growth, Plans Pause in Early 2026 Amid Oversupply Concerns
- Rahaman Hadisur
- 2 days ago
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
OPEC+ has announced a modest increase in oil output for December, followed by a pause in production hikes during the first quarter of 2026. The decision reflects the group’s cautious approach to managing global supply as fears of an oil glut continue to grow.
Since April, OPEC+ has raised output targets by about 2.9 million barrels per day, roughly 2.7% of global supply but began moderating its pace in October as market forecasts signaled an impending oversupply. On Sunday, the eight key members of the alliance, Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Oman, Kazakhstan, and Algeria, agreed to increase production by 137,000 barrels per day in December, mirroring the levels set in October and November.
The group confirmed that it would pause production increases in January, February, and March 2026, citing seasonal demand declines and the need to stabilize prices. Oil prices, which had fallen to a five-month low of around $60 a barrel in October, have since rebounded to about $65 following Western sanctions on Russian producers and renewed optimism over U.S. trade discussions.
Market analysts say the move signals strategic restraint. “OPEC+ is blinking, but it’s a calculated blink,” noted one energy analyst, adding that sanctions on Russia have added fresh uncertainty to supply projections. The pause, experts suggest, is designed to protect prices, maintain unity, and allow the group time to assess the impact of restrictions on Russian oil exports.
Industry observers also point out that the first quarter is typically the weakest period for global oil demand, making the pause a prudent step in balancing market conditions.
OPEC+ will reconvene on November 30, the same day as the full ministerial meeting, to review output strategy and assess market developments heading into the second quarter.
