OPEC+ is reportedly considering delaying its planned monthly supply increases set to start in April, despite pressure from U.S.
OPEC+ is weighing a potential delay in its planned production increases, as some delegates argue the global oil market is still too fragile, said a delegate, who requested anonymity.
The group remains divided on the issue, with no final decision made yet.
Delaying the 120,000-barrel-per-day increase would be the fourth time the Saudi Arabia- and Russia-led alliance has postponed plans to restore production cuts implemented since 2022.
President Donald Trump
has urged OPEC to “cut the price of oil,” revisiting a stance from his first term.
However, with prices at $74 a barrel, many OPEC members still struggle to meet government spending needs.
Last week, the group’s Secretary-General stressed that its decisions will prioritize long-term impacts
“Fundamentally, you can present a case for a supply return in April,” said Harry Tchilinguirian, head of oil research at Onyx Commodities Ltd. But “let’s get real: the oil price will determine the decision.”
The group first announced its plan to gradually revive production in June last year.
However, with oil demand growth slowing in China and new supplies flooding in from the Americas, the plan has been delayed three times.
Going ahead with production increases could worsen the expected oil surplus.
Even if OPEC+ keeps output steady, global supplies are expected to exceed demand by an average of 450,000 barrels per day this year, according to the International Energy Agency.
Both JPMorgan Chase & Co. and Citigroup Inc. predict prices could drop into the $60s by the end of 2025.
