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The OPEC+ cartel has announced that it is pausing the crude oil production increases it had planned for next year.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) met on Nov. 2 and decided to increase its production by an additional 137,000 barrels of oil in December.

However, it said other increases planned for January, February and March 2026 are being paused "due to seasonality."

Analysts and oil companies such as Chevron (NYSE: $CVX ), Shell (NYSE: $SHEL ), and Occidental Petroleum (NYSE: $OXY ) welcomed news of the pause after increased oil production has dampened crude prices.

However, the pause is not likely to sit well with the U.S. government that has called for production increases and lower gas prices at the pumps for consumers.

The average price for a gallon of gasoline in the U.S., a key economic and political indicator,

Is currently at $3.03 U.S.

Over the past few weeks, both the U.S. and United Kingdom (U.K.) implemented new oil sanctions on Russia over its ongoing war in Ukraine, a development analysts say could constrain supplies and lift prices in coming months.

Up until now, OPEC+ had justified its crude oil production increases by saying that energy demand from artificial intelligence (A.I.) and China required it.

Commodities analysts and traders warned that OPEC+ risked swamping the global market with excess supply, driving down prices.

Brent crude oil, the international standard, is trading right around $65 U.S. a barrel, while West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading near $60 U.S. per barrel.