Commodities January 26, 2026

OPEC+ Poised to Keep March Output Freeze as Prices Rise on Kazakhstan Disruption

Group of eight producers set to maintain pause on monthly output increases amid supply disruptions and subdued demand forecasts

By Sofia Navarro
OPEC+ Poised to Keep March Output Freeze as Prices Rise on Kazakhstan Disruption

OPEC+ is widely expected to hold its halt on increasing oil production for March, according to three OPEC+ delegates, after crude prices climbed following a fall in Kazakhstan's output. An upcoming meeting of eight member countries will review the pause that was implemented for January-March despite an earlier decision to raise output targets for later in 2025.

Key Points

  • OPEC+ is expected to maintain the pause on monthly production increases for March at its February 1 meeting, according to three OPEC+ delegates.
  • An 8% month-to-date rise in oil prices has pushed crude above $66 a barrel, driven in part by a sharp fall in Kazakhstan's output.
  • The eight-member group previously raised output targets by ~2.9 million bpd for April-December 2025 but paused monthly hikes for January-March amid weak demand forecasts.

Three OPEC+ delegates said the producer group is likely to keep its pause on monthly increases in oil production for March when members meet this weekend. The decision follows an 8% rise in oil prices so far this month, pushing benchmarks above $66 a barrel after a notable drop in Kazakhstan's crude output.

The meeting will bring together eight OPEC+ members - Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman - who jointly account for about half of global oil production. The session is scheduled for February 1, and delegates are expected to confirm a continuation of the halt on additional supply for March.

Last year the eight members agreed to lift oil production targets by roughly 2.9 million barrels per day for the period from April to December 2025, a volume equivalent to almost 3% of estimated world demand. At the same time they enacted a pause on the planned monthly increases for January through March amid forecasts of weak demand.

Market anxiety over supply has been heightened by a string of disruptions. Drone strikes and technical problems have curtailed output in Kazakhstan, and JP Morgan has estimated that the Tengiz oilfield will remain offline through the end of January. The bank projects Kazakhstan's crude production will average between 1.0 and 1.1 million barrels per day in January, down from a typical level of about 1.8 million barrels per day, JP Morgan said.

Delegates also noted that Venezuelan output is unlikely to rebound quickly and that any recovery would take time, making it improbable to have a major effect on the global oil balance in the near term. The United States has urged oil companies to invest in Venezuela to help lift production, and the U.S. captured Venezuelan President Nicolas Maduro early in January, according to the account provided to delegates.

Separately, the prospect of potential U.S. strikes on Iran has increased concerns about future supply availability. Against that backdrop, some earlier reporting had indicated OPEC+ would keep policy settings steady, a position that appears to be reflected in the expected outcome of the forthcoming meeting.

OPEC and authorities in Saudi Arabia and Russia had not immediately provided comment on the meeting plans. The combination of elevated prices, production disruptions in Kazakhstan, and geopolitical uncertainty continues to shape near-term market expectations as producers weigh the timing and scale of additional supply.

Risks

  • Further reductions in supply due to threats of U.S. strikes on Iran could tighten markets and affect energy prices - relevant to oil producers and energy markets.
  • Ongoing technical issues and drone attacks have already cut Kazakhstan's output, and the Tengiz field is expected to remain offline through January, creating near-term supply uncertainty for global crude markets.
  • A slow recovery in Venezuelan output means additional barrels are unlikely to materially rebalance the market soon, sustaining upside pressure on prices for producers and refiners.

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