Overview

• OPEC+ has announced plans to increase oil production by 2.2 million barrels per day over the next 18 months, beginning April 1, 2025.
• This marks the first production increase since October 2022, following nearly three years of voluntary cuts aimed at supporting prices.
• Brent crude oil prices have dropped to a five-month low, trading at approximately $71 per barrel, as global demand remains weak, particularly in China.
• The decision is seen as a response to internal pressures within OPEC+ to address overproduction by members like Russia, Iraq, and Kazakhstan, as well as external market realities.
• While some have speculated U.S. President Trump's calls for lower oil prices influenced the move, analysts note the plan was set before his administration and reflects broader market strategies.