OPEC+ has agreed to pause its planned oil supply increases through the first quarter of 2026, keeping production at current levels amid a surplus in global markets and uncertainty over future oil output from Venezuela.
According to Bloomberg, the decision was taken during a brief meeting held on Sunday and led by the group’s key members, Saudi Arabia and Russia. The report said the meeting lasted less than 10 minutes.
Bloomberg also reported that OPEC+ is closely watching developments following the US capture of Venezuela’s leader, Nicolás Maduro, which could affect the country’s future oil production.
However, the issue of Venezuela was not discussed during the meeting, as delegates considered it premature to adjust supply policy based on the political situation.
Saudi Arabia and Russia confirmed that the group will keep collective production steady through March 2026.
The move reflects a cautious stance by OPEC+ as it balances a global oil surplus with uncertainty around Venezuelan output. Delegates cited by Bloomberg said it would be too early to change supply policy in response to events in Venezuela at this stage.
Venezuela currently produces about 800,000 barrels of oil per day, a small share of its potential output despite holding the world’s largest proven oil reserves. Any meaningful recovery in its production is expected to take years.
Don’t Miss This:
Algeria Hires Sinopec For $437 Million Arzew Refinery Unit To More Than Double Gasoline Output
The decision to pause supply increases follows a major shift in April last year, when OPEC+ moved quickly to restart production that had been cut since 2023.
That move was widely seen as an effort to regain market share lost to rivals such as US shale producers, even though signs suggested global supply was already ample.
Before the latest decision, OPEC+ had agreed to restore roughly two-thirds of the 3.85 million barrels per day of output it cut in 2023, leaving about 1.2 million barrels per day yet to be brought back.
In practice, actual output increases have fallen short of plans, as some members have faced physical production constraints while others worked to correct earlier overproduction.
For Nigeria, the decision to hold output steady through early 2026 has important implications. As one of Africa’s largest oil producers and a key OPEC member, Nigeria’s economy and government revenues are closely tied to oil prices and export volumes.
By maintaining current production levels in a market already facing surplus supply, OPEC+ is signaling an approach that could keep oil prices relatively stable but subdued in the near term.
This may limit short-term revenue growth for Nigeria, which depends heavily on oil exports to fund public spending and support its budget.
While Venezuela’s full return as a major oil producer remains uncertain and distant, any future increase in its output could add further pressure to global supply, potentially capping prices and weighing on Nigeria’s oil earnings.
In this environment, Nigeria faces the challenge of managing its production capacity efficiently, maximizing revenue from existing output and pushing ahead with efforts to diversify its economy beyond oil.
Don’t Miss This:
Image Credit: Business Recorder
