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Market Research Activity > Blog > Business > OPEC+ Stands Pat on Oil Production as Prices Sink
Business

OPEC+ Stands Pat on Oil Production as Prices Sink

kavita
Last updated: 2026/01/05 at 9:58 AM
kavita Published January 5, 2026
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OPEC+ Keeps Oil Output Steady Amid Member Turmoil

The OPEC+ oil alliance decided on Sunday to keep oil production unchanged, even as political tensions grow among several of its members.

Contents
OPEC+ Keeps Oil Output Steady Amid Member TurmoilOil Prices Hit Hard in 2025Steepest Drop Since 2020Political Tensions Left Off the TableDisputes Among Key MembersSaudi Arabia–UAE Rift DeepensYemen Conflict Sparks SplitWhy This Matters

The decision came after a brief meeting that avoided discussion of the internal crises affecting the group, which produces around half of the world’s oil.


Oil Prices Hit Hard in 2025

Steepest Drop Since 2020

The meeting followed a sharp fall in oil prices, which have dropped more than 18% so far in 2025. This marks the largest yearly decline since 2020, driven largely by concerns that global oil supply is exceeding demand.

Despite the price slump, OPEC+ chose not to adjust output levels.


Political Tensions Left Off the Table

Disputes Among Key Members

Several OPEC+ members are currently facing political and military tensions, but these issues were not addressed during the meeting.

One major flashpoint involves Saudi Arabia and the United Arab Emirates, whose relationship has worsened in recent weeks.


Saudi Arabia–UAE Rift Deepens

Yemen Conflict Sparks Split

Tensions flared last month over the long-running conflict in Yemen, when a UAE-aligned group seized territory from a government backed by Saudi Arabia.

The incident has led to the most serious split between the two countries in decades, ending years of close cooperation.


Why This Matters

OPEC+ decisions play a major role in shaping global energy prices. With oil prices falling and political divisions growing, the group’s ability to act together could face new challenges in the months ahead.

For now, OPEC+ is choosing stability — even as uncertainty continues to build behind the scenes.

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TAGGED: energy markets, Geopolitics, global energy, oil prices, oil production, OPEC+, Saudi Arabia, UAE

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