Venezuela Crisis: OPEC+ Halts Plan to Increase Oil Supply in Q1

The Organisation of Petroleum Exporting Countries and its allies, (OPEC+) has decided to pause its planned oil supply increases through the first quarter of 2026, maintaining current production levels amid a global market surplus and uncertainty surrounding Venezuelan oil supplies.

This decision was made at a brief meeting on Sunday, led by key members Saudi Arabia and Russia.

The group’s decision reflects caution amid a surplus in global oil markets and uncertainty over Venezuelan output.

“Delegates noted it would be premature to change supply policy in response to political developments in Venezuela at this stage,” according to Bloomberg.

Venezuela currently produces about 800,000 barrels per day, a small fraction of its potential given it holds the world’s largest oil reserves.

The pause in production increases carries significant implications for Nigeria’s oil-dependent economy. As one of the largest oil producers in Africa and a key OPEC member, Nigeria’s revenue and economic stability are closely tied to global oil supply and prices.

“Oil revenues account for a major share of Nigeria’s foreign exchange earnings and government income, making global supply decisions critical for budget planning and currency stability”.

The decision also highlights wider structural pressures in the oil market. With production rising faster than demand, the International Energy Agency has warned that global oil markets could face a record surplus in 2026.