Sources say that OPEC+ is likely to stick with its plan to increase oil production.
Despite Donald Trump's pleas to lower oil prices, delegates of the producer group said that OPEC+ would likely stick to its current plan to increase output gradually starting in April.
Four OPEC+ source said that the Joint Ministerial Monitoring Committee meeting, scheduled to start at 1300 GMT on Monday, is unlikely to recommend an increase in output beyond what OPEC+ has already planned. Sources declined to give their names.
The meeting follows the announcement by U.S. president Donald Trump of sweeping tariffs against Mexico, Canada, and China, America’s top trading partners. This move has caused financial markets to rumble and, on Monday, gave oil prices some boost.
Helima Croft, an analyst at RBC Capital Markets, wrote in a report that "we think the intention is to continue on the current course."
She added, "We suspect that there will be an intricate diplomatic dance to make sure the organization and its various members are not the target of retaliatory anger."
Oil prices reached $83 per barrel on January 15, the highest level since August, due to concerns about the impact U.S. Sanctions on Russia. Since then, prices have fallen below $77 a barrel. However, they rose on Monday due to the increased concern over supply disruptions.
OPEC+ (Organisation of Petroleum Exporting Countries, led by Russia), has agreed to cut production by 5,85 million barrels a day (bpd), which is equal to 5.7% of the global supply. This reduction was made in a series of measures since 2022.
OPEC+ has extended the latest round of cuts until the first quarter 2025. This delayed a plan for a production increase to April. This was just the latest in a series of delays caused by weak demand and increased supply outside the group.
Calculations show that based on this plan, the United Arab Emirates will begin to increase their production in April, with a 138,000 bpd monthly increase. The increases will continue until September 2026. Reporting by Ahmad Ghaddar and Maha El Dahan; editing by Bernadette B. Baum
(source: Reuters)
