- OPEC+ will raise oil production by 138,000 barrels per day starting in April, marking its first increase since 2022.
- The decision follows pressure from U.S. President Donald Trump for lower oil prices.
- The group plans to gradually phase out 2.2 million bpd in cuts by September 2026, but adjustments may be made based on market conditions.
- Internal disagreements persist, with Saudi Arabia favoring caution while the UAE pushes for higher output.
After prolonged delays, OPEC+ has decided to implement a modest oil production increase of 138,000 barrels per day beginning in April. This marks the first production hike since 2022, signaling a measured approach to unwinding the 2.2 million bpd in cuts that have been in place to stabilize prices.
Geopolitical and Economic Pressures
The decision comes amid renewed calls from U.S. President Donald Trump for lower oil prices, urging Saudi Arabia and its allies to boost output. With crude prices around $71 per barrel and global uncertainty—including U.S. sanctions on Russia, Iran, and Venezuela—OPEC+ faced a complex decision. The production increase, set to continue through September 2026, remains subject to change based on market conditions.
Internal OPEC+ Tensions and Strategic Considerations
OPEC+ continues to navigate internal disagreements. Saudi Arabia remains cautious about rapidly increasing output, prioritizing market stability. Meanwhile, the UAE has been pushing for higher production and has previously considered leaving the cartel. With Chinese demand fluctuating and geopolitical risks at play, the production hike appears to be a strategic test rather than a definitive policy shift.
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Source: Oil Price
