The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) have announced a temporary halt to oil output hikes during the first quarter of 2026, citing a slowdown in global demand.
In a statement issued after a virtual meeting on Sunday, the group — which includes Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — said it would proceed with a modest increase of 137,000 barrels per day (bpd) in December before pausing further hikes from January to March.
OPEC+ explained that the move reflects expectations of a seasonal dip in oil consumption, typically seen in the first quarter of the year.
The alliance said it will continue to monitor market conditions closely and adjust production as needed to ensure stability.
“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 statement read.
The cartel reaffirmed its “cautious and flexible” approach, noting that it retains the option to pause or reverse previous voluntary production adjustments, including the 2.2 million bpd cut announced in late 2023.
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OPEC+ has gradually raised oil production throughout 2025, citing strong market fundamentals and declining inventory levels.
In October, the group approved a 137,000 bpd increase beginning in November, aimed at maintaining balance amid steady global growth.
This latest decision to freeze output hikes signals a shift in OPEC+’s strategy as demand softens and uncertainty grows around global energy markets — particularly against the backdrop of geopolitical tensions and uneven economic recovery.