OPEC+ producers have agreed to deepen oil output cuts in a renewed effort to rein in excess supply and stabilise prices as global markets remain oversupplied heading into 2026.

Four key members of the alliance, the United Arab Emirates, Iraq, Kazakhstan and Oman said they will increase their compensation cuts through the first half of the year. Together, the countries plan to remove about 829,000 barrels per day from the market by June, a sharp increase from their earlier commitments.

Kazakhstan will deliver the largest reduction after pledging to cut 669,000 barrels per day, up from a previous target of 131,000 barrels per day. Iraq will maintain output cuts of 100,000 barrels per day, while the UAE will raise its reduction to 55,000 barrels per day from just 10,000 barrels per day. Oman’s cuts will stand at roughly 5,700 barrels per day over the same period.

The deeper cuts come after OPEC+ earlier decided to pause plans to gradually unwind its voluntary production cuts totaling 2.9 million barrels per day. That supply will now remain off the market through the first half of the year as the group seeks to improve compliance and manage mounting supply pressures.

Despite these measures, analysts expect oil markets to stay oversupplied in 2026. Strong production growth from outside the OPEC+ alliance continues to offset the group’s cuts, with the United States, Brazil, Canada, Guyana and Argentina leading new supply growth as new projects come online.

U.S. crude production is expected to remain near record levels after hitting an all-time high of 13.87 million barrels per day late last year, supported by shale output and offshore production in the Gulf of Mexico.

Demand growth, however, is forecast to remain modest. Slower global economic activity, improved fuel efficiency and rising electric vehicle adoption are limiting oil consumption growth, contributing to inventory build-ups in several regions, particularly in parts of Asia.