Key Points:
- Eight OPEC+ nations agreed to keep oil production steady through March.
- The decision extends a pause on output hikes originally planned for the first quarter.
- The group is trying to support prices amid a global oil surplus. The formal agreement is expected to be finalized at a Sunday meeting.
- Major producers like Saudi Arabia and Russia continue to hold back supplies.
Major oil producers are playing it safe. Eight key members of the OPEC+ alliance have agreed in principle to keep their oil production levels steady through March, delaying a planned increase in output. According to sources close to the discussions and a draft statement, the group wants to wait a bit longer before opening the taps, fearing that adding more barrels now could hurt prices that are already under pressure.
The decision was reached just ahead of a formal online meeting scheduled for Sunday afternoon. This move effectively extends a plan originally set back in November 2025, where the group decided to pause output hikes for the first quarter of this year. The goal is simple: prevent a global surplus from growing too large and crashing the market.
The alliance, which includes heavyweights like Saudi Arabia and Russia, had originally hoped to start slowly unwinding its voluntary production cuts by now. These countries are currently keeping about 2.2 million barrels of oil per day off the market to help prop up prices.
However, the global market hasn’t recovered as fast as they hoped. With the United States pumping oil at record levels and economic growth in big consumer markets like China facing headwinds, there is already plenty of crude available.
If OPEC+ were to add more supply right now, it would likely send prices tumbling. Brent crude has been struggling to gain momentum recently, trading at levels that make it hard for many member nations to balance their government budgets.
By extending the pause through March, the group buys itself another month to see if demand picks up or if supply from competitors slows down.
The formal meeting on Sunday is expected to officially stamp this agreement. Traders will be watching closely to see if the group gives any hints about what happens after March. For now, the message from the world’s biggest oil cartel is one of caution. They are holding the line to keep the market stable rather than risking a price collapse by chasing market share.
