Russian Deputy Prime Minister Alexander Novak announced on Monday that OPEC+ is not considering postponing the planned oil supply increases set to begin in April. This statement comes amidst speculation and calls from U.S. President Donald Trump for lower oil prices.
Key Highlights:
OPEC+ Supply Plans:
OPEC+, which includes OPEC members and allies like Russia, is scheduled to increase oil supply starting in April.
Novak confirmed that there have been no discussions regarding delaying these increases.
Market Conditions:
Some OPEC+ delegates believe the market may be able to absorb the additional supply due to tougher sanctions and increased demand from China.
However, it remains too early to definitively assess the market’s capacity to handle the extra supply.
Analyst Predictions:
Analysts from firms like Morgan Stanley expect OPEC+ to maintain current output levels rather than increase supply.
OPEC and Saudi government representatives did not provide immediate comments on the situation.
Current Production Cuts:
OPEC+ is currently cutting production by 5.85 million barrels per day (bpd), approximately 5.7% of global supply.
These cuts were agreed upon in response to weak demand and rising supply from outside the group.
Previous Extensions:
In December, OPEC+ extended its output cuts through the first quarter of 2025, delaying the planned increases due to ongoing market conditions.
The unwinding of the most recent layer of cuts, totaling 2.2 million bpd, will commence in April, with an initial increase of 138,000 bpd.
Future Decisions:
The planned hikes will continue until September 2026, with a final decision on the April increase expected in early March.