The Organisation of Petroleum Exporting Countries plus (OPEC+) has agreed to delay production of crude oil by a month until the end of December 2024, the group said in a statement on Sunday. The eight OPEC+ countries namely, Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, were supposed to increase production in December as part of the group’s strategy to gradually withdraw from the latest production restrictions including a cut of 2.2 million barrels per day (bpd).

However, sources at OPEC+ told reporters the decision was influenced by weak demand notably from China. According to the group, the eight countries have “reiterated their collective commitment to achieve full conformity” with output targets, but noted a recent announcement made by Iraq and a joint statement by Russia and Kazakhstan in which they “strongly reaffirmed commitment to the agreement including the additional voluntary production adjustments and to their compensation schedules for the overproduced volumes since January 2024.”

Before Sunday’s one-month postponement, the eight OPEC+ members were due to gradually unwind the 2.2 million bpd cut by increasing supply in December 2024 and over the following months into next year.

The remaining OPEC+ cuts of 3.66 million bpd will stay in place until the end of 2025, as per an agreement in June 2024.

OPEC+ ministers are expected to hold a meeting to decide policy for 2025 on December 1.