OPEC+ to Increase Oil Production from April... "Trump's Influence"

The Organization of the Petroleum Exporting Countries (OPEC) and major oil-producing countries comprising OPEC+ (OPEC member countries and non-OPEC allies) are scheduled to increase production starting in April, according to reports by Bloomberg and others on the 3rd (local time).

OPEC+ announced in a statement that it plans to increase production by 138,000 barrels per day starting next month.

This is a gradual lifting of the existing production cut program introduced to prevent a decline in crude oil prices. The plan is to progressively restore the previous cut volumes by 2026.

OPEC+ stated, "The gradual increase in production may be temporarily suspended or reversed depending on market conditions," adding, "This flexibility allows us to continue supporting the stability of the oil market." The increase was agreed upon by eight OPEC+ countries: Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.

Bloomberg noted that this could be an example of the influence of U.S. President Donald Trump, who pressured OPEC+ to lower oil prices. Just two days after his inauguration, on January 22, during a virtual speech at the World Economic Forum in Davos, Switzerland, President Trump demanded that OPEC+ reduce oil prices. This production increase is presumed to be a result of his pressure.

Additionally, Russia, a major oil producer, has seen improved relations with the U.S. since President Trump's inauguration, potentially creating favorable conditions for its crude oil exports. Bloomberg analyzed that while the U.S. pressures Iran's oil exports, OPEC+ countries could fill that gap.

Harry Tchilinguirian, Head of Oil Research at Onyx Commodities, stated, "Even a gradual and small increase in supply will be perceived as a negative factor for prices."

Earlier, the International Energy Agency (IEA) predicted that even if OPEC+ maintains current production levels, the global oil market will face a supply surplus of 450,000 barrels per day this year, as supply from the U.S., Brazil, Canada, and others exceeds consumption growth.

On the same day, West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange closed at $68.37 per barrel, down $1.39 (1.99%) from the previous session. Brent crude, the global oil price benchmark, closed at $71.62 per barrel, down $1.19 (1.63%) from the previous session.

This content was produced with the assistance of AI translation services.