Investing.com — OPEC+ is likely to delay the planned easing of oil production cuts, according to analysts at Citi Research.
The group, which includes major oil-exporting nations and allies, is preparing for a virtual meeting on December 1, where its ongoing production policies will be in focus.
The prevailing plan to gradually unwind 2.2 million barrels per day of voluntary production cuts—originally announced in June 2024—has already seen multiple delays, from an October 2024 start to December, and now January 2025.
Citi strategists believe this schedule will be further deferred, with a new potential start date in April 2025.
This anticipated delay comes against the backdrop of softening global oil demand, an oversupply forecast for 2025, and weak market fundamentals.
Citi estimates that global oil stocks are set to increase by approximately 1 million b/d in 2025, despite the ongoing cuts, with prices averaging $60 per barrel for the year.
Additionally, demand from China, a key consumer of crude, is expected to be lower than anticipated, while non-OPEC+ production continues to rise robustly.
OPEC+ members are reportedly hesitant to bring more oil to the market…
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