OPEC+ has decided to proceed with a planned April oil output increase, the group announced on Monday, Reuters news report said.
This decision comes after U.S. President Donald Trump renewed pressure on OPEC and Saudi Arabia to bring down oil prices.
The increase marks the first output hike since 2022 from OPEC+, which includes the Organization of the Petroleum Exporting Countries, Russia, and other allied nations. Oil prices responded with a 2 percent decline, trading around $71 per barrel at 1900 GMT.
Eight OPEC+ members responsible for the latest output cuts held a virtual meeting on Monday, where they confirmed their commitment to the April increase, totaling 138,000 barrels per day, according to Reuters calculations. The organization emphasized in a statement that the increase remains subject to market conditions and could be paused or reversed if necessary. OPEC+ stated that this flexibility would allow them to continue supporting oil market stability.
The price of iil has been fluctuating between $70 and $82 per barrel in recent weeks due to speculation about potential shifts in U.S. sanctions on major oil producers, including Iran, Russia, and Venezuela. Additionally, the possibility of new U.S. tariffs on China has added to market uncertainties that could impact global demand.
The recent rally to multi-month highs above $82 per barrel in January was driven by sanctions imposed on Russia by former U.S. President Joe Biden. However, prices have since declined amid hopes that Trump might negotiate a peace deal in the Russia-Ukraine war, which could lead to increased Russian oil exports. Despite these downward pressures, Trump’s stance on cutting Iran’s oil exports to zero and the recent cancellation of a Chevron license to operate in Venezuela have prevented oil prices from falling further.
OPEC+ sources have indicated that the complexity of balancing these bullish and bearish factors made the April decision particularly challenging. They also noted that Trump’s proposed global tariffs could add further complications to the market outlook. The evolving geopolitical landscape, combined with economic policies and shifting energy demands, continues to influence oil price dynamics.
Since 2022, OPEC+ has been implementing a series of output reductions totaling 5.85 million barrels per day, equivalent to approximately 5.7 percent of global oil supply. These cuts were designed to stabilize the market amid economic uncertainties.
In December, OPEC+ extended its most recent round of cuts through the first quarter of 2025, delaying the planned output increase until April. Under the current plan, the gradual unwinding of 2.2 million barrels per day in production cuts will begin with a measured increase of 138,000 barrels per day each month, ensuring a controlled return to higher production levels.