OPEC Plans to Increase Oil Output Starting April

OPEC may resume oil output increases starting in April, as indicated by three sources who spoke to Reuters. The group is preparing for peak summer demand and aims to bolster prices amid ongoing tensions between the United States and Iran.

The resumption would allow OPEC leaders, particularly Saudi Arabia and fellow member UAE, to regain market share while facing competition from Russia and Iran, which are contending with Western sanctions. The eight OPEC producers, including Saudi Arabia, Russia, UAE, Kazakhstan, Kuwait, Iraq, Algeria, and Oman, will convene on March 1 to discuss raising production quotas by 2.9 million barrels per day from April until the end of December 2025, equating to a 3% increase in global demand.

Current plans for further increases are frozen until January-March 2026 due to weaker consumption. Brent crude is trading near $68 per barrel, despite speculation of a supply glut.

OPEC's latest forecast shows a projected demand drop of 400,000 bpd in the second quarter compared to the first quarter, with an overall annual demand increase of 600,000 bpd expected by 2025.