Opec crude oil production fell by 90,000 b/d to 26.87mn b/d for March but is now set to climb this month and next as voluntary cuts begin to be unwound. The Opec+ ‘Group of Eight’ will unwind production cuts by 138,000 b/d this month, accelerating to 411,000 b/d next month, despite oil prices crashing over the past week amid a broader market meltdown following US President Donald Trump’s ‘Liberation Day.’
The scale of the actual production increases should be markedly less than the headline announcement given that many Group of Eight members are already overproducing, while so-called ‘Compensation Cuts’ should also limit the gains (MEES, 4 April). Even though output gains will be limited, the 3 April announcement of the accelerated tapering contributed to a market selloff in which Brent dropped from nearly $75/B on 1 April to less than $60/B at one point on 9 April, before President Trump’s announcement of a 90-day pause on many of the tariffs generated a rally. (CONTINUED - 1733 WORDS)
