OPEC+ reaffirms planned pause on oil output hikes until March

VIENNA

OPEC nations and oil-producing allies have reaffirmed plans to keep current oil output levels unchanged until March, and agreed a mechanism to assess members' maximum production capacity, without giving any details.

The announcements were made after ministers of the Organization of the Petroleum Exporting Countries and allied nations (OPEC+) held a string of virtual meetings, including the alliance's biannual ministerial meeting.

The meetings came as uncertainty remained over how oil prices will develop in the near future, with traders looking for indications of progress in ongoing negotiations on resolving the conflict in Ukraine, which could lead to the return of Russian crude to markets.

Citing expected lower seasonal demand, OPEC+ countries said they would stick to a planned pause on oil output hikes "in January, February, and March 2026" following a small production increase in December.

The OPEC+ alliance also said it approved a mechanism to assess members' maximum production capacity "to be used as reference for the 2027 production baselines."

Since April, eight key OPEC+ members have boosted production in an effort to regain market share amid strong competition from producers outside the group, such as the U.S., Canada and Guyana.

But early November they agreed to a pause in further hikes amid fears of a supply glut.

Geopolitical uncertainties including ongoing negotiations on Russia's war in Ukraine have also put pressure on oil prices as well as producers.