OPEC+ agreed to stick to its policy of gradually raising oil output from April on Monday (Feb 3) and removed the US government’s Energy Information Administration from the sources used to monitor its production and adherence to supply pacts.
Opec+ and Donald Trump clashed repeatedly during his first administration in 2016-2020 when the US President demanded it raise production to compensate for the drop in Iranian supply, which resulted from US sanctions.
Trump has already called on Opec to release more oil to bring down prices since returning to the White House, saying elevated prices have helped Russia continue the war in Ukraine.
At an online meeting on Monday, a group of top Opec+ ministers made no change to the output hike plan and changed the list of consultants and other firms it uses to monitor its production, known as secondary sources.
“After thorough analysis from the Opec Secretariat, the Committee replaced Rystad Energy and the Energy Information Administration (EIA) with Kpler, OilX, and ESAI, as part of the secondary sources used to assess the crude oil production and conformity,” they said in a statement.
One Opec+ source said that the removal of EIA data was because the agency was not providing communication on the information required and was not driven by politics. The US government did not immediately respond to a request for comment.
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The meeting comes after Trump imposed tariffs on Mexico, Canada and China, America’s top trading partners, in a move that roiled financial markets and gave oil prices some support.
Concern about the impact of US sanctions on Russia pushed oil prices to US$83 a barrel on Jan 15, the highest since August. Prices have since slipped below US$77, although they were up on Monday as the tariffs raised concerns over supply disruption.
The Organization of the Petroleum Exporting Countries and allies led by Russia, or 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, Opec+ extended its latest layer of cuts through the first quarter of 2025, pushing back a plan to begin raising output to April. The extension was the latest of several delays due to weak demand and rising supply outside the group.
Based on that plan, the unwinding of 2.2 million bpd of cuts – the most recent layer – and the start of an increase for the United Arab Emirates, begins in April with a monthly rise of 138,000 bpd, according to Reuters calculations.
The hikes will last until September 2026. REUTERS
