After 3 consecutive delays last year, OPEC+ may increase crude oil production since April as planned.
February 17, News Agency RIA (Russia) reported that Deputy Prime Minister Alexander Novak affirmed that the organization of oil exporters and allies (OPEC+) did not postpone the increase in oil production. As planned, this organization will pump an additional 138,000 barrel of oil a day to the market since April 2025.
The sources of Reuters At OPEC+ also revealed no discussion about postponement of production increases. They explained that the market could absorb additional pump oil, because the US recently punished fuel punishment with Russia and the demand from China.
Deputy Prime Minister Alexander Novak at the St. Economic Forum Petersburg in June 2024. Image: Reuters
Before that, Bloomberg Excerpts from close sources that OPEC+ consider whether or not to postpone increasing oil pumps, despite US President Donald Trump recently called for lowering the price of this product. In January, at the World Economic Forum (WEF) in Davos (Switzerland), Mr. Trump announced he would ask Saudi and OPEC to lower fuel prices to end the Russian -Ukrainian conflict.
Last year, OPEC+ backed up a plan to increase production for 3 consecutive times. The reason is that the world needs slow down and foreign countries increase production. This organization now contributes half of global oil supply.
Some analysts, as Morgan Stanley said they forecasted OPEC+ to retain the existing production level. They have kept production since the end of 2022, in order to prevent the supply in the market, causing prices to decrease, causing damage to member countries that depend on oil exports. Currently, this group cuts 5.86 million barrels, equivalent to 5.7% of global demand.
However, Brent oil price in the past year only fluctuated around 70-80 USD per barrel. In September 2024, the price was still low in the year, at 69 USD. Currently, Brent trades around $ 75. According to the International Monetary Fund (IMF), Saudi Arab – the leading country OPEC – needs a price around US $ 100 to balance the budget.