DUBAI/LONDON, Jan 4 (Reuters) - OPEC+ has decided to keep oil production levels the same after a quick meeting on Sunday, avoiding discussions about the political issues affecting some of its members.
This meeting, involving eight members of OPEC+, comes after oil prices dropped over 18% in 2025, marking the largest annual decline since 2020, primarily due to worries about oversupply.
Last month, tensions between Saudi Arabia and the UAE escalated during a long-standing conflict in Yemen, where a group backed by the UAE took control of territory from the Saudi-supported government. This led to significant discord between the two nations, which were once close allies.
Additionally, on Saturday, U.S. forces captured Venezuelan President Nicolas Maduro, with President Donald Trump stating that the U.S. would take over the country until a new government transition could occur, although he did not clarify how this would happen.
Jorge Leon, head of geopolitical analysis at Rystad Energy and a former OPEC official, noted, “Currently, oil markets are influenced more by political uncertainty than by supply-demand basics. OPEC+ clearly prioritizes stability rather than taking action.”
The eight OPEC+ members, which include Saudi Arabia, Russia, the UAE, Kazakhstan, Kuwait, Iraq, Algeria, and Oman, had previously agreed to increase oil output targets by around 2.9 million barrels per day in 2025, approximately 3% of global oil demand, to reclaim market share.
In November, these nations decided to pause output increases for January, February, and March due to low demand during the winter in the northern hemisphere. The brief online meeting on Sunday reaffirmed this policy without discussing Venezuela, according to one OPEC+ delegate.
The next meeting of these eight countries is scheduled for February 1, according to OPEC+.
OPEC has historically managed to resolve internal disagreements, like those seen during the Iran–Iraq War, by focusing on market stability rather than political conflicts.
However, the group faces several crises including reduced Russian oil exports due to U.S. sanctions associated with the ongoing war in Ukraine, and Iran grappling with protests and U.S. threats of intervention.
Though Venezuela holds the world's largest oil reserves—surpassing even those of Saudi Arabia—its oil production has significantly declined due to years of mismanagement and sanctions.
Analysts believe it will take years to see any significant increase in oil output, even if U.S. oil companies invest the billions in Venezuela that Trump has promised.