OPEC+ Delays Output Hike, Oil Prices Dip

Oil prices edged lower on Thursday as investors weighed OPEC+’s decision to extend its production cuts until April 2025 against a projected surplus in global supply for next year. Brent crude futures fell 0.3% to settle at $72.09 a barrel, while U.S. West Texas Intermediate (WTI) crude futures declined 0.35% to $68.30.

OPEC+, a coalition of oil-producing nations led by Saudi Arabia and Russia, initially planned to gradually unwind its 2.2 million barrels per day (bpd) production cut from October 2024. However, concerns over slowing global demand and rising output from non-OPEC+ producers prompted the group to delay the timeline.

While the extension of production cuts is seen as a supportive factor for oil prices, analysts caution that ample supply in 2025 could limit significant upside potential. A weaker U.S. dollar, driven by expectations of lower interest rates, provided some relief to oil prices.

In geopolitical news, tensions in the Middle East continue to simmer. Israel has warned of a potential return to war with Hezbollah, while U.S. efforts to broker a ceasefire in Gaza and secure the release of hostages are ongoing.