Oil prices fall after Opec+ confirms it will increase crude production

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OPEC+ says that from April, the plan to increase the production of oil will move forward, in an unexpected step in the cartel that has sent the crude price.

Saudi Arabia and seven more members OPEC+ The group had delayed the plan to unawind the long -lasting output cut several times and the traders expected to postpone it again.

However, OPEC+ Monday said that they agreed to move forward with the “slow and flexible return” of the 2.2MN barrel for the next 18 months.

After the OPEC+ announcement, the price of Brent Croud has dropped by 2 percent less than $ 72, the lowest level in about three months, after the announcement of OPEC+ announced, traders respond to increasing supply.

Concern about the possible impact of US duty Economic activity Already the weight on the crude price was, which in January this year is more than $ 82 barrels lower than 10 percent less than the barrel.

US President Donald Trump confirmed to the US Monday Impose 25 percent of the tariff Products imported from Canada and Mexico from local time on Tuesday.

“Two things are hitting the market simultaneously, Trump’s tariffs and OPEC+ restoration of the production,” said Clearview Energy Partners’ co-founder of a research agency, “” It is not surprising that it creates a sales signal to the traders. ”

Trump OPEC+ called for Davos’s executives to reduce oil prices during a lecture in January.

OPEC+ initially intended to start the group output cuts in September, but the plan was delayed three times.

The eight countries that increase production from April are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

OPEC+ says all other existing production will be in the cut spot.

“This may be the opposite of the slow growth or the opposite of the market conditions,” the group has added. “This flexibility allows the group to continue supporting the oil market stability”.

Three separate sets of output cuts mean OPEC+ members are producing about 6 million B/D than their joint capacity, which presents about 6 percent of the global oil supply.

Saudi Arabia has kept most cuts on the shoulder till today, in the last two years its own production has reduced by 2 million B/D.

This policy has occasionally spread tensions with the United States, which tried and failed to increase the production of Riyad in 2022 after the increase in oil prices after Russia’s full-scale aggression in Russia.

The Financial Times reported in September that Saudi officials were ready for the first time in several years Bring back to productionEven if it leads to a low price prolonged period.

Amrit Sen, the founder and research director of the research institute at a research firm Energy Cips, said that the meaning of the supply and demand viewpoint was a place to “add barrels slowly before the summer”, only overSopoli is likely to be overSopoli at the end of the year.

“The group may choose to break then,” he added.