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OPEC Plus Maintains Oil Policy Amid Global Market Tensions

The OPEC Plus Group Maintains Current Oil Production Policy

The OPEC Plus Group convened on February 3, 2025, to reaffirm its existing oil production policy during its joint ministerial monitoring committee meeting. The coalition expressed appreciation for the commitments made by Iraq and Kazakhstan regarding oil discounts and scheduled its next Ministerial Monitoring Committee meeting for April 5.

This decision was unified, firmly standing against pressures from external stakeholders, including calls from U.S. President Donald Trump to reduce oil prices. Trump’s implementation of significant tariffs on trade partners, notably Mexico, Canada, and China, has created volatility in financial markets, inadvertently offering some support to oil prices in the latest trading session.

The function of the joint ministerial monitoring committee typically involves making recommendations regarding oil production strategies; however, on this occasion, no new recommendations were presented.

Concerns surrounding U.S. sanctions against Russia have resulted in oil prices surging to $83 per barrel as of January 15—the highest level observed since August. Although prices have subsequently receded to below $77, a recent uptick was noted on February 3, fueled by escalating fears over potential disruptions to supply linked to tariffs.

Currently, the OPEC Plus group is enacting a production cut of 5.85 million barrels per day, representing approximately 5.7% of global supplies, a strategy initiated in 2022. In December, OPEC Plus decided to extend the commitment to production discounts into the first quarter of 2025, which deferred a planned increase in output until April.

This extension reflects ongoing adjustments made in response to subdued demand and heightened supply pressures from outside the group. According to the existing plan, a gradual tapering of 2.2 million barrels per day is anticipated, with production increments originating from the Emirates scheduled to continue until September 2026.

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