KEY POINTS
- OPEC+ denies reports of delaying its April oil supply hike.
- The group is set to gradually increase production until 2026.
- Final decisions on production levels are expected in early March.
Despite market speculation, OPEC+ has no plans to postpone its scheduled oil production increase in April, according to Russia’s Deputy Prime Minister Alexander Novak.
Speaking to Russian state media on Monday, Novak confirmed that the group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies like Russia, is sticking to its plan.
His remarks come after a Bloomberg report suggested OPEC+ was considering a delay amid calls from U.S. President Donald Trump to lower global oil prices. However, three OPEC+ delegates told Reuters there had been no discussions about pushing back the production hike.
One delegate said that the market might be able to absorb the additional supply, citing increased demand from China and stricter sanctions affecting oil trade. Still, it remains unclear how these factors will play out in the coming months.
OPEC+ production plan stays on track
Currently, OPEC+ is reducing output by 5.85 million barrels per day, which accounts for roughly 5.7 percent of global oil supply. This reduction has been implemented in stages since 2022 to stabilize the market.
In December 2024, the alliance extended its production cuts through the first quarter of 2025, postponing a planned output increase to April.
Under the agreed framework, OPEC+ will gradually unwind 2.2 million barrels per day of cuts, beginning with a 138,000 barrel-per-day increase for the United Arab Emirates in April.
This phase-out will continue until September 2026, but OPEC+ is expected to finalize its decision in early March. Analysts, including Morgan Stanley, predict that the group might extend its current production levels depending on market conditions.
What’s next for the global oil market?
The current stance of OPEC+ stays firm yet upcoming choices might get impacted by worldwide developments.
Investors closely monitor the unpredictable oil market since follow supply-and-demand patterns, geopolitical tensions and economic factors in regions such as China and the United States.
Saudi Arabia and other key OPEC members have not publicly commented on whether the production hike could be adjusted in the future.
The upcoming March decision will draw special attention from market analysts seeking indications from oil-producing nations.
The organization OPEC+ remains dedicated to its current strategy by ignoring predictions of schedule delays, to implement the planned production increase.
