Global oil markets face uncertainty as OPEC+ extends production cuts, citing sluggish demand and rising non-OPEC supply growth.
Oil prices slipped in early Asian trading on Friday, with weak demand in focus after the OPEC+ group postponed planned supply increases and extended deep output cuts to the end of 2026.
Oil edged lower in early Asian trade. Trade remains in a tight range despite OPEC's decision to keep voluntary production cuts, ANZ Research said.
Oil markets in 2025 could face turbulence if President-elect Donald Trump reintroduces strict policies toward Iran.
OPEC+ at its Dec. 5 meeting made further changes to its oil production policy, by delaying a planned increase in output further into next year as it faces a weaker oil demand outlook.
The crude oil market continues to see a lot of noisy behavior, as the bottom has held firm in both grades that I follow for FX Empire. At this point, most traders have been trading this through a rangebound trading system, with success.
The Organization of the Petroleum Exporting Countries and its allies will further push back an oil production increase planned for January by three months amid softer prices and market concerns of an impending glut.
Eight OPEC+ members will keep production cuts of 2.2 million barrels per day in place until April 2025, two delegate sources told CNBC. The cuts were originally supposed to start phasing out in December.
This production cut was previously due to start being phased out in December.
OPEC+ has agreed to delay its plan to raise oil output until April 2025, an OPEC+ source told Reuters while its meeting was underway, to provide additional support for the oil market.
RBC's Helima Croft contrasts what OPEC+ can do with oil production and prices against President-elect Trump's aim to "drill, baby, drill".
OPEC+ Set to Extend Cuts: Crude oil prices hinge on today's decision. Will supply limits lift futures above resistance levels?