Oil prices fall after Opec+ confirms it will increase crude production

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OPEC said that it will continue to increase oil production in April, with an unexpected step by cartel, which raw prices.

Saudi Arabia and seven other members Opec + The group has previously postponed long-term outgoing cuts, and traders widely expected it to be delayed again.

But OPEC said on Monday that over the next 18 months has agreed to “Gradually and Flexible Return” of 2.2 million barrels of oil production in the next 18 months.

The price of Brent Crude fell by 2%, up to $ 72 a barrel, lowest level after Opec + announcement, as traders responded to the prospect of supply.

Concerns about the possible impact of US tariffs Economic activity They already weighed on raw prices that have been less than $ 82 per barrel in January.

Monday US President Donald Trump confirmed US Forced 25% tariffs On Tuesday on goods imported from Canada and Mexico.

“The two things hit the market, Trump tariffs, and OPEC + resume stopped production,” research company, “KEKS” book book. “It’s not surprising that this makes sales signal to traders.”

Trump called on OPEC to lower oil prices in Davos during the January speech.

OPEC intends to start not to fulfill the group’s output reduction in September, but delayed the plan three times.

Eight countries that increase production from April, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

All other cuts of existing production will remain on the spot, the statement of OPEC + said.

“This gradual growth can stop or reverse to market conditions,” the group added. “This flexibility will allow the group to continue to support the stability of the oil market.”

Three different collections of results mean that OPEC + members produce almost 6 m / d, their combined capabilities representing about 6 percent of global oil supply.

Saudi Arabia has led the majority of their shoulders to reduce its production by 2mn B / D in the last two years.

Politics sometimes inflamed the tension with the United States, which he tried and could not stimulate Riyadh in 2022 after the entire large-scale invasion of Russia was connected with Ukraine.

In September, the Financial Times reports that Saudi officials were ready for the first time in a few years Bring feedbackEven if it led to a long period of lower prices.

Emrita Saint, Founder and Director of Energy Aspects, Research Company, which says that the prospect of supply and demand means that for OPEC + “increase unnecessary to summer.”

“The group can choose to pause,” he added.