OPEC+ has confirmed it will proceed with a planned oil output increase in April, marking the first such move since 2022. The decision comes amid renewed pressure from U.S. President Donald Trump to lower oil prices and stabilize the market. The group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, announced the increase following a virtual meeting of eight member countries responsible for the latest round of production cuts.
The April output hike will add 138,000 barrels per day (bpd) to the market, according to Reuters calculations. OPEC+ emphasized that the increase could be paused or reversed depending on market conditions, highlighting the group’s commitment to maintaining oil market stability.
Oil prices have been volatile in recent weeks, trading between 70 and 82 a barrel, as markets weigh the potential impacts of U.S. sanctions on major producers like Iran, Russia, and Venezuela, as well as global tariffs that could dampen demand. Prices surged above $82 a barrel in January following new U.S. sanctions on Russia but have since retreated on hopes of a Russia-Ukraine peace deal and increased Russian oil flows. However, Trump’s recent moves to curb Iran’s oil exports and revoke Chevron’s license in Venezuela have added upward pressure to prices.
OPEC+ has been cutting output by 5.85 million bpd since 2022 to support the market. In December, the group extended its latest round of cuts through the first quarter of 2025, delaying the planned output increase to April. The gradual unwinding of 2.2 million bpd in cuts is set to begin in April, with monthly increases of 138,000 bpd.
The decision to proceed with the output hike reflects OPEC+’s cautious approach to balancing supply and demand in a complex geopolitical and economic environment.