Opec+’s decision to delay the revival of its oil production was aimed at compensating for a seasonal lull in demand early next year.as declared by the Minister of Energy of Saudi Arabia.
“The first quarter is not a good quarter to bring in volumes,” Prince Abdulaziz bin Salman told CNBC in an interview. “OPEC+ agreed on Thursday to postpone a series of modest production increases from January to Apriland slow down the pace of those climbs when they finally begin. Global oil demand typically begins to decline in the first quarter, when winter fuel consumption declines.
For several months, the group has tried to restore production interrupted in the last two years, but has been frustrated by falling demand in China. and the increase in supply in America, which puts pressure on crude oil prices.
Many analysts predict that global oil markets will still be in surplus in 2025 even if Opec+ does not increase production. Despite the decision to postpone it, Prince Abdulaziz said the alliance “sincerely believes that the market next year will be better than anticipated.” Oil traders have been lukewarm about Thursday’s decision, with futures falling. in London to two-week lows below US$72 a barrel.
