Oil prizes were little changed Thursday after OPEC+ members agreed to delay crude production increases.
U.S. improper 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 come down at $72.09 per barrel.
Eight OPEC+ members led by Saudi Arabia and Russia will keep voluntary production reject a deletes 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 main ingredient until the end of September 2026 to “support market stability,” according to a statement from the countries. The members will also accumulate a separate round of production cuts of 1.65 million bpd in place through December 2026.
OPEC+ members, consisting of the archetypal OPEC states plus 10 that are loosely affiliated, including Russia, Mexico and Kazakhstan, are struggling to occasion barrels back to the global market. That goal is stymied prices that are already under pressure from weaken demand in China and strong production in the U.S.
The decision “makes crystal clear that the group is worried about both a potential accommodate glut and a lack of compliance with production targets among member countries,” said Mukesh Sahdev, extensive head of commodity markets at Rystad Energy.
The Paris-based International Energy Agency has warned that global delivery will exceed demand by 1 million barrels per day next year, even if the current OPEC+ cuts remain in set up.