OPEC+ alliance, comprising 22 major oil-producing nations led by Saudi Arabia and Russia, has postponed its highly anticipated meeting on 2025 oil output policy to December 5, 2025. Originally scheduled for this weekend, the decision comes amid speculations of internal disagreements over production plans.

The Organisation of the Petroleum Exporting Countries (OPEC) announced the rescheduling on Thursday, attributing the delay to a scheduling conflict with the 45th Gulf Summit taking place in Kuwait City. However, analysts remain skeptical about the stated reason.

Rystad Energy analyst Jorge Leon voiced doubts about the scheduling clash explanation, stating, “The dates were set a long time ago, so it’s not that they realised three days ago that there is a clash. This might hint that the group needs more time to align divergent views before deciding what to do next.”

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The postponed meeting, which will now be held online, comes at a time when OPEC+ members have been working to manage global crude prices. Earlier this month, eight key members, including Saudi Arabia, Russia, and the UAE, extended their production cuts until the end of December 2024 to counter slowing demand and stabilize prices.

Despite this move, analysts warn of potential challenges for the group. Maintaining output cuts could lead to a decline in OPEC+ market share as non-OPEC producers continue to ramp up production. Conversely, increasing production risks driving down prices, creating a delicate balancing act for the alliance.

With global oil demand fluctuating, all eyes are now on the December 5 meeting as OPEC+ grapples with these critical decisions. The outcomes will likely have significant implications for global energy markets heading into 2025.