OPEC+ Seen Extending Output Freeze as Oil Prices Hit Multi-Month Highs

OPEC+ is expected to maintain its current halt on production increases into March when members meet on Sunday, according to delegates quoted by Reuters, despite a sharp rise in crude prices driven by geopolitical risk tied to Iran. The producer alliance is weighing its next move as markets tighten and Brent crude trades above $70 a barrel.

The talks involve eight core OPEC+ producers that together account for roughly half of global oil output. Their meeting comes with Brent hovering near $72 a barrel, its strongest level since August, even as earlier concerns about a supply surplus have faded in the face of stronger prices and supply risks.

Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman had collectively increased output targets by about 2.9 million barrels per day between April and December 2025—around 3% of global demand. Further planned hikes were subsequently suspended for the January–March 2026 period due to seasonally softer demand. Three delegates said the upcoming meeting is unlikely to deliver decisions extending beyond March.

There was no immediate comment from OPEC+ or from officials in Saudi Arabia and Russia. A separate meeting of the Joint Ministerial Monitoring Committee (JMMC), which oversees compliance but does not set production policy, is also scheduled for Sunday.

Oil markets have been supported by escalating tensions between the United States and Iran. President Donald Trump has stepped up pressure on Tehran over its nuclear programme, including threats of military action and the deployment of U.S. naval assets to the region, while sanctions continue to restrict Iran’s oil exports. Reuters reported that Washington is considering targeted strikes aimed at destabilising Iran’s leadership.

Further price support has come from supply disruptions in Kazakhstan, where repeated operational issues have curtailed output in recent months. Authorities said this week that production at the massive Tengiz oilfield is being brought back online gradually after a series of outages.