Changes in OPEC+ Production Plan
OPEC and its allies (OPEC+) announced on Sunday that oil production will be increased by 137,000 barrels per day in December 2025. However, the group decided to pause any further production hikes for January, February, and March 2026. This “strategic pause” aims to balance market conditions in light of weaker demand forecasts and an expected supply surplus in early 2026.
Market Reaction and Price Fluctuations
According to the latest data:
-
Brent crude (January futures) fell 0.28% to $64.71 per barrel.
-
West Texas Intermediate (WTI) December futures declined 0.25% to $60.90 per barrel.
-
On India’s Multi Commodity Exchange (MCX), November crude oil futures dropped 0.70% to ₹5,409, while December contracts fell 0.66% to ₹5,405.
Analysts noted that this minor decline indicates a cautious sentiment among traders, who are assessing OPEC+’s restraint amid rising global inventories.
Analysts’ Warning on Supply Outlook
According to Warren Patterson and Ewa Manthey of ING Think, a significant crude oil surplus is likely in the first quarter of 2026, making OPEC+’s decision to delay production growth a prudent move. However, they cautioned that new U.S. sanctions on Russia could disrupt Russian oil exports — particularly from companies such as Rosneft and Lukoil — potentially altering the surplus outlook. The analysts also noted that the sanction relaxation period ends on November 21, which could bring new market adjustments.
🧾 Exam-Oriented Facts
OPEC+ will increase production by 137,000 barrels per day in December 2025.
Production hikes for January–March 2026 have been put on hold.
On November 4, 2025, Brent crude traded at $64.71 and WTI at $60.90 per barrel.
New U.S. sanctions may affect Russian oil supply and global prices.
Other Commodity Market Trends
Apart from crude oil, other commodities also showed mixed performance:
-
On MCX, November nickel futures dropped 1.89% to ₹1,288.50.
-
On NCDEX, November guar gum contracts rose 0.43% to ₹8,731.
-
Meanwhile, December turmeric (farmer polished) futures fell 0.97% to ₹14,532.
Analysts believe that fluctuating global trade dynamics and energy supply shifts may continue to cause volatility across commodity markets in the coming months.
