OPEC's announcement of additional production cuts caught markets off guard, but the real story lies in what the decision signals about global oil demand.
## The Numbers
- Total cuts: 1.2 million barrels per day
- Effective date: March 1, 2025
- Duration: Through end of Q3 2025
## Demand Concerns
Our analysis suggests these cuts are defensive, not strategic. Chinese consumption data shows weakness, and European industrial output continues to disappoint.
## Price Outlook
We maintain our $75-85/barrel range for Brent crude through mid-2025, with downside risks if demand deteriorates further.