Oil prices fell during Asian trading on Friday, reflecting concerns over weak demand as the OPEC+ group deferred planned supply increases and extended output cuts through to the end of 2026.
By 2:30 pm AEDT (3:30 am GMT) Brent crude futures had dropped by $0.09, or 0.1%, to US$72.00 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped $0.05, or 0.1%, to US$68.25 per barrel.
CNBC reported that OPEC+ announced the postponement of plans to unwind several formal and voluntary production cuts, citing tepid global demand, particularly from China, and increased output from other producers.
This decision, detailed in internal documents and confirmed by delegate sources, underscores the alliance's cautious approach amid a subdued economic outlook.
On Thursday, the OPEC+ coalition capped combined oil production at 39.725 million barrels per day (bpd) until 31 December 2026, extending this quota beyond the initially planned end date of 2025.
As part of the updated agreement, eight OPEC+ members maintained their voluntary production cuts of 2.2 million bpd through the first quarter of 2026. Incremental production increases will then commence between April and September 2026. Additionally, the rollback of a separate 1.7 million bpd production cut, originally scheduled to conclude in 2025, has now been deferred to late 2026.
OPEC+ had aimed to begin easing cuts in October 2024, but persistent demand weaknesses and rising supply from non-OPEC producers led to repeated delays.