OPEC+ Confirms Plans to Increase Oil Production Starting April
Oil exporting countries have decided to increase production by 138,000 bpd starting next month. The move is crucial because by doing so, the organization is thus granting Donald Trump's request for increase output
In an online conference, the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and its allies, led by Russian Federation, known as OPEC+, made a radical decision to increase oil production by 138,000 barrels per day (bpd) starting April 1. The production increase is distributed proportionally among the eight OPEC+ countries – Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman (see charts below) – but represents only a drop in the ocean in a global oil market estimated at 104 million bpd. Nevertheless, according to experts, this is a significant “political” move, reflecting the OPEC+ countries’ agreement with the new policy of US President Donald Trump, who calls on US and international oil companies to “increase hydrocarbon production in order to reduce energy prices.”
OPEC plans to increase oil supply by 2.2 million bpd in a phased manner by September 2026. In its statement, the organization stressed that the phased increases “could be suspended or even reversed depending on market conditions.” Such flexibility is designed to maintain price stability in the global oil market. Oil has fluctuated between $70 and $82 a barrel in recent weeks, driven by the expectation of a review of US sanctions policies against several key oil-producing countries such as Iran, Russia, and Venezuela, as well as the possible impact of US duties on China, which could dampen demand.
OPEC+ sources explained that a combination of bullish and bearish factors made the April decision extremely difficult. They also said Donald Trump’s plans for global duties could further complicate the outlook.
