OPEC+ to Maintain Gradual Output Increase Despite Trump's Call for Lower Prices
OPEC+ is expected to adhere to its current plans to gradually increase oil production from April, sources within the producer group told Reuters. This decision comes despite U.S. President Donald Trump's recent request for the organization to reduce prices.
At a meeting of the Joint Ministerial Monitoring Committee on Monday, delegates from OPEC+ indicated that no substantial changes to the existing output plan are likely to be proposed. The meeting commenced at 1300 GMT and focused on assessing the market situation.
According to industry analysts, OPEC+ is cautious about altering its current course of action. "We think the intention remains to stay the course," said Helima Croft of RBC Capital Markets. "There will likely be a diplomatic effort to mitigate any potential backlash from the organization or its member states."
Concerns over the impact of U.S. sanctions on Russia have contributed to oil prices reaching $83 per barrel in mid-January, the highest level since August. Despite a subsequent decline, prices remain elevated due to concerns about supply disruptions caused by the recently announced tariffs on Mexico, Canada, and China.
OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies led by Russia, has been implementing production cuts of 5.85 million barrels per day (bpd) since 2022. In December, the group extended these cuts to the first quarter of 2025, delaying the planned increase in production to April.
Based on the current schedule, OPEC+ will begin unwinding 2.2 million bpd of its most recent production cuts in April. This will be accompanied by a monthly increase of 138,000 bpd for the United Arab Emirates, continuing until September 2026.