OPEC+ reportedly considering delaying April oil supply hike
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The news: OPEC+ is considering pushing back its planned series of monthly oil supply increases due to begin in April, Bloomberg reported, citing unnamed delegates.
Some delegates said global oil markets remain too fragile to revive production now, while others said no decision has been made.
Reuters reported that three unnamed OPEC+ delegates said no discussions on a delay had taken place, while Russian state news agency RIA quoted Deputy Prime Minister Alexander Novak stating the timeframe “remains the same.”
The context: OPEC+ has delayed its production roadmap three times since June last yar, due to weak demand and rising non-OPEC supply.
The numbers: The group is cutting output by 5.85 million barrels per day, about 5.7% of global supply. It planned to start unwinding its 2.2 million barrel per day cuts in April, gradually increasing output until September 2026.
The planned April increase is for an extra 138,000 barrels per day, according to Reuters calculations.
The International Energy Agency projects a global surplus of 450,000 barrels per day this year, and JPMorgan and Citigroup expect prices to drop into the USD60s before the end of 2025.
A final decision on the April increase is expected in early March, according to Bloomberg
