OPEC+ Eyes Boost in Oil Output Amid Global Tensions

OPEC+ considers resuming oil output increases in April due to expected peak summer demand and robust prices. This move may reclaim market share for members like Saudi Arabia and UAE amidst western sanctions affecting others like Russia and Iran. No final decision has yet been made.

OPEC+ is preparing to potentially increase oil production from April, motivated by anticipated peak summer demand and tensions involving U.S.-Iran relations, according to insiders. The strategic move aims to boost market share for leaders Saudi Arabia and the UAE while dealing with output challenges posed by Western sanctions on other members, including Russia and Iran.

A key meeting involving eight OPEC+ countries, including Saudi Arabia, Russia, and the UAE, is scheduled for March 1. During discussions, they intend to increase production quotas by 2.9 million barrels per day from April, marking around 3% of global demand. These plans, however, could be altered amid ongoing price volatility despite Brent crude's stability at near $68 per barrel.

No conclusive decisions on resuming output increases have been made, with further deliberations expected before the March meeting. Current forecasts reveal that while second-quarter demand may dip, annual demand could rise by 600,000 bpd in 2025. Anticipated spring demand boosts also remain a significant factor in OPEC+'s decision-making process.

(With inputs from agencies.)