OPEC+ sticks to current output plans
Oil prices plunged after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) re-affirmed plans to bring back some supply starting 1 April.
PHOTO: Flag of OPEC. Getty Imges
The eight members of the Saudi Arabia-led coalition, participating in 2.2 million b/d of combined voluntary production cuts, have decided to proceed with a gradual unwinding, starting next month.
The planned output increase is expected to add about 138,000 b/d to the group’s total production in April, Reuters reports. The news has put downward pressure on Brent’s price today.
“Oil prices are weaker as OPEC+ confirms it will start reversing supply cuts,” two analysts from ING Bank noted.
This is the first production increase announced by the Vienna-headquartered group since 2022. The plan outlines a gradual phase-out of these cuts from April to September 2026, OPEC said earlier.
The decision comes amid heightened pressure from the US President Donald Trump, who is urging Saudi Arabia and its allies to boost production in a bid to lower oil prices, according to market analysts.
“The increase is likely to make President Trump happy, given the pressure he’s been putting on OPEC to boost supply,” ING Bank’s analysts said.
The eight OPEC+ members participating in 2.2 million b/d production cut include, Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman.
By Aparupa Mazumder
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