London - Oil prices dipped on Friday despite OPEC+’s decision to prolong deep output cuts until the end of 2026. While the move was aimed at stabilizing the market, analysts continue to forecast a supply surplus in 2025, dampening price optimism.

Brent crude futures declined by 0.9% to $71.43 per barrel, and US West Texas Intermediate (WTI) crude futures fell by 1% to $67.65 per barrel. For the week, Brent was on track for a 2% decline, and WTI was set for a 0.5% drop.

OPEC+, comprising the Organization of the Petroleum Exporting Countries and its allies, had initially planned to begin unwinding production cuts from October 2024. However, concerns over slowing global demand, particularly in China, and rising output from other producers led the group to postpone the easing of restrictions multiple times.

While some analysts, such as UBS’s Giovanni Staunovo, praised the group’s unity and commitment to market balance, others remained cautious. Bank of America, for instance, anticipates increasing oil surpluses to drive Brent prices to an average of $65 per barrel in 2025, despite expecting a rebound in oil demand growth to 1 million barrels per day next year.

HSBC also revised its forecast for a smaller oil market surplus of 0.2 million barrels per day, down from its previous estimate of 0.5 million barrels per day.

The overall market sentiment remains subdued, with Brent crude prices confined to a tight range of $70-75 per barrel in recent weeks. PVM analyst Tamas Varga noted that while short-term factors might briefly push prices outside this range, the medium-term outlook remains pessimistic.