OPEC+ has confirmed its decision to proceed with a 138,000 barrels per day (bpd) increase in oil production starting in April, marking the first production hike since 2022. The decision follows renewed pressure from U.S. President Donald Trump, urging the group, particularly Saudi Arabia, to take action to lower oil prices. As of Monday, oil prices were trading 2% lower at $71 per barrel, reflecting market anticipation of shifting supply and demand dynamics.
Despite uncertainties surrounding U.S. sanctions on Russia, Iran, and Venezuela, as well as potential tariffs on China, OPEC+ stated that the increase remains conditional on market stability and could be paused or reversed if necessary. The group has been cutting output by 5.85 million bpd since 2022 to stabilize prices. The gradual unwinding of 2.2 million bpd of production cuts is set to begin in April, with monthly increases subject to evolving geopolitical and economic factors.
