OPEC+ to not consider delay of April oil supply hike to global markets: Russian Deputy PM Novak

OPEC+ producers are not considering delaying a series of monthly oil supply increases scheduled to begin in April 2025. Russian Deputy Prime Minister Alexander Novak told Russia's RIA state news agency that the Vienna-based oil-producing group would not delay the existing plan to increase the supply in global oil markets amid an oversupply from the US crude oil producers.

Bloomberg News reported that the OPEC+ group, which consists of the Organization of the Petroleum Exporting Countries with Russia and other allies, was examining whether to postpone the supply increases despite calls from US President Donald Trump to lower oil prices. OPEC+ delegates told Reuters there has been no discussions on delaying the increase so far.

Also Read: OPEC+ sticks to output policy, Goldman Sachs eyes limited impact of Trump’s tariffs on crude oil

OPEC+ to hike oil supply in global markets in April 2025

The global crude oil market may be able to absorb extra supply from April due to tougher sanctions and higher Chinese demand, although it was too early to make that call. OPEC+ is cutting output by 5.85 million barrels per day (bpd), equal to about 5.7 per cent of global supply, agreed in a series of steps since 2022.

In December 2024, the OPEC+ group extended its latest layer of cuts through the first quarter of 2025, pushing back the plan to begin raising output to April. The extension was the latest of several delays due to weak oil demand and rising supply outside the group nations, especially the US.

Also Read: Brent crude outlook bearish on oversupply, grim oil demand; 2025 average pegged at $74 after hitting $80 in 2024

According to Reuters, the unwinding of 2.2 million bpd of cuts—the most recent layer—and an increase for the United Arab Emirates will begin in April with a monthly rise of 138,000 bpd. The oil supply hikes will last until September 2026. Based on the OPEC+ group's previous practice, a final decision to proceed with the April increase is expected around early March.

Crude oil lost early gains on Tuesday, February 2024. Prices were back near their previous close amid uncertainty over how supply will be affected by Ukraine-Russia peace talks, international trade tariffs and OPEC crude output.

Brent crude futures were up only 1 cent at $75.23 per barrel, retreating from $76.07 earlier in the session. US West Texas Intermediate crude futures were up 51 cents from Friday's close to $71.25 a barrel. There was no settlement for the US WTI crude on Monday because of the US Presidents' Day holiday.

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