OPEC+ extends oil cuts as U.S. tightens Iran sanctions
The OPEC+ alliance countries are set to decide at a virtual meeting whether to end their restricted oil production or extend the supply cuts to prevent a drop in crude prices. CNBC reported leaks on this matter.
"Eight OPEC+ members will now extend their 2.2 million-barrel-per day voluntary production decline into the first quarter, and will begin hiking production incrementally between April and September 2026," CNBC reported, citing two sources within the cartel.
Delegates, who remain anonymous due to "the sensitivity of talks," stated that the motivation for this decision stems from concerns about weak global oil demand prospects.
Previously, an increase in oil supply from OPEC+ was planned to begin in January 2025, totaling 180,000 barrels per day. The group has been restricting these supplies since the end of 2022 to maintain higher oil prices in global markets.
After CNBC reported leaks about the alliance's decision, oil prices dropped. "Brent crude futures gained 46 cents, or 0.64%, to $72.77 per barrel," CNBC reported.
Members of OPEC+ include Algeria, Angola, Saudi Arabia, Ecuador, Iraq, Iran, Qatar, Kuwait, Libya, Nigeria, Venezuela, the United Arab Emirates, and allies like Russia.
U.S. sanctions on oil supplies from Iran
Meanwhile, the U.S. has imposed additional sanctions on oil supplies from Iran, targeting 35 entities and vessels that play crucial roles in the "secret" fleet illegally transporting Iranian oil to foreign markets.
The U.S. State Department announced that this new wave of sanctions targets tankers and ship management companies involved in the network that transports Iranian oil abroad using false documentation, manipulating ship tracking systems, and frequently changing ship names and flags.
The entities managing the ships affected by U.S. sanctions are based in the United Arab Emirates, China, India, Hong Kong, the Marshall Islands, and Panama.
