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Breaking: Sharp Oil Price Drop Amid Tariff War and OPEC+ Production Rise.
OPEC+ countries have announced a gradual plan to reinject 2.2 million barrels per day into the market starting in April 2025, aiming to balance global market developments. The decision followed a virtual meeting attended by representatives from Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, where they discussed the future of the oil market and production policies.
Oil Prices Decline After the Announcement
Oil prices dropped following the decision, with Brent crude falling 1.45% to $70.58 and West Texas Intermediate (WTI) declining 1.26% to $67.50 per barrel. The drop coincided with U.S. President Donald Trump’s announcement of suspending military aid to Ukraine and imposing new tariffs on imports from Canada, Mexico, and China.
Reports also indicated that the White House is considering easing sanctions on Russia, which could increase global oil supply. This has raised market concerns about the potential impact on global oil demand.
Production Plan and OPEC+ Actions
OPEC+ maintained its production policy during its Vienna meeting, postponing output increases until April 2025. Additionally, voluntary cuts of 1.65 million barrels per day, initially set in April 2023, have been extended until the end of 2026. The production increase is scheduled to begin at a gradual pace of 180,000 barrels per day per month until September 2026.
Meanwhile, Trump urged OPEC to lower oil prices, stating that such measures could help curb inflation and create conditions for interest rate cuts.
OPEC Production Rises in February
According to Bloomberg data, OPEC’s oil production in February reached its highest level in over a year, hitting 27.35 million barrels per day. Iraq led the increase with an additional 100,000 barrels per day, followed by production growth in the UAE and Venezuela. Higher exports to China and Japan also contributed to the UAE’s production boost.
