OPEC+ announced a slight increase in oil production for April, citing a healthier market outlook. The alliance expects global oil demand growth of 1.4 million barrels per day for 2025 and 2026. However, the decision to ease production cuts by adding 138,000 barrels per day seems influenced by pressure from U.S. President Donald Trump, who has urged OPEC to reduce oil prices. While OPEC maintains that politics do not influence its decisions, geopolitical factors, including sanctions on Venezuela and Iran, likely played a role. The U.S. revoked Chevron’s license to operate in Venezuela, coinciding with new tariffs on Canadian and Mexican crude. This move leaves U.S. refiners seeking alternatives. Analysts suggest that after years of production cuts without significant price increases, OPEC+ members may prioritize sales volume over higher prices. The decision to slightly increase production could appease Trump while OPEC+ continues to monitor market conditions and U.S. policies. The ongoing trade wars could dampen oil demand growth in the U.S. and China, with potential inflationary impacts from broad-based tariffs. — news from OilPrice.com
