US EditionWhat Is an ‘Oil Glut,’ and Why Are Companies Worried About One?
OPEC+ halted production hikes from January to March 2026 to avoid a supply glut after raising output by over 2.5 million barrels per day since April, sources said.
- On Sunday, OPEC+ agreed to pause its planned 2026 production hikes, while approving a December increase of 137,000 barrels per day.
- OPEC+ officials said seasonality and oversupply risks prompted the decision after boosting output by more than 2.5 million barrels per day.
- At around 10 a.m. EST Brent Crude traded at $64.67 per barrel, down 0.15%, while West Texas Intermediate was $60.86, down 0.20%, and Monday benchmarks fell by less than 1%.
- Domestic producers warned that the price level undermines new drilling as domestic oil and gas executives cited higher supply-chain costs and Ryan Lance, ConocoPhillips CEO, warned U.S. crude supply may plateau at $60.
- Despite sanctions introduced last month, analysts said the pause suggests OPEC+ does not expect major Russian supply losses, as Lukoil agreed to sell assets to Gunvor.
13 Articles
13 Articles
OPEC+ 2026 pause on production hikes allays fears of oil glut
OPEC+ agreed to pause its plans to continuously increase production in 2026, as its monthslong production hikes had stoked fear among global and U.S. producers that increased supply would push the market to an oil glut and further depress prices. Since April, OPEC+ has increased production by more than 2.5 million barrels per day, causing crude prices to toe and even fall below the $60 barrel line. Many domestic oil and gas executives said this …
Oil steady despite OPEC+ plans to pause output hike
Brent crude futures gained 12 cents, or 0.2%, to settle at $64.89 a barrel Oil prices held steady on Monday as the market balanced the latest OPEC+ supply hike with the group’s plans to pause output hike in the first quarter of 2026 along with fears of an oil supply glut and weak factory data in Asia. Brent crude futures gained 12 cents, or 0.2%, to settle at $64.89 a barrel. OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) an…
Crude Oil Falls After OPEC+ Freezes Output Growth For Q1 Amid Market Surplus Fears
Oil prices slipped on Tuesday as investors interpreted OPEC+’s decision to freeze output growth in the first quarter of next year as a warning sign of potential oversupply in the global market. Brent crude oil, the international benchmark for Nigeria, declined by 37 cents, or 0.6% to $64.52 a barrel by 08:00 a.m., while U.S. […] The post Crude Oil Falls After OPEC+ Freezes Output Growth for Q1 Amid Market Surplus Fears appeared first on Investor…
Oil Prices Rise on OPEC Production Pause
Oil prices have seen a slight increase following OPEC’s announcement that it will pause production increases through the first quarter of 2026. This decision comes in response to growing uncertainty surrounding Russian oil supplies and escalating geopolitical tensions. According to ANZ analysts, OPEC met over the weekend for its monthly review and decided to maintain a steady output for at least three months, following a 137,000 barrels a day in…
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