OPEC+ extends suspension of oil production increase in March: Details and prices
In a move aimed at bolstering stability in global energy markets, eight member countries of the OPEC+ alliance have reached a preliminary agreement to extend the suspension of planned oil production increases into March. According to a recent draft statement, this decision reflects the alliance's strategy of cautiously managing global supply and demand fluctuations.
Details of the agreement and participating countries
The agreement includes eight key countries: Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Iraq, Algeria, Oman, and Kazakhstan. These countries had previously planned to increase their production quotas by 2.9 million barrels per day between April and December 2025, representing approximately 3% of total global oil demand. However, market developments led them to postpone the planned increases for the period from January to March 2026, citing the typical seasonal decline in consumption during the first quarter of the year.
The economic context and the importance of the decision
This decision comes at a sensitive time for the global economy, as the OPEC+ alliance has sought since its inception to create a sustainable balance between supply and demand. This step is particularly important because a hasty increase in production during periods of seasonal weakness in demand could lead to a supply glut, negatively impacting prices and harming the economies of producing countries. The extension reflects the members' commitment to a proactive approach that takes macroeconomic variables into account.
Market performance and geopolitical tensions
In terms of trading, markets responded positively to these policies, with oil prices maintaining their strong gains and closing near six-month highs. Escalating geopolitical tensions, particularly concerns about supply disruptions due to the tensions between the United States and Iran, significantly supported prices.
In numerical terms, Brent crude futures settled at $70.69 a barrel, and despite a slight decrease of 0.03% at settlement, they still posted strong weekly gains of 7.3% and a monthly jump of 16.2%. Meanwhile, West Texas Intermediate (WTI) crude closed at $65.21 a barrel, registering a weekly increase of 6.8% and a monthly rise of approximately 13.6%, confirming the continued buying momentum in the market, supported by the policies of the alliance and regional security concerns.
