Despite President Trump’s urging, the OPEC+ group has decided to maintain its current plan to gradually unwind cuts from April 2025, rather than accelerating the process as expected.
The Joint Ministerial Monitoring Committee (JMMC), which reviews policy and markets, made this decision during its Monday meeting. This news comes despite recent turbulence in oil prices, which jumped after Trump’s administration imposed sanctions on Russian oil trade and called on OPEC to lower prices.
However, Trump’s efforts to pressure the group have had little impact. In a recent address to the World Economic Forum, he said he would ask Saudi Arabia and OPEC to reduce oil costs. However, this did not lead to any changes in the JMMC’s decision.
The alliance reiterated its importance of compliance with cuts and timely compensation for non-compliant producers. The group had previously decided to delay the start of easing cuts from January 2025 to April 2025 and extend the process until September 2026.
Oil prices rose on Monday after Trump announced tariffs on imports from Mexico and Canada, except for energy exports. However, global financial markets took a hit due to the announcement.
The JMMC does not make decisions on production levels, which are determined by OPEC+ ministerial meetings. The group’s decision to maintain its current plan is likely driven by concerns about maintaining market stability and ensuring compliance with agreed-upon quotas.
Source: https://oilprice.com/Latest-Energy-News/World-News/OPEC-Wont-Change-Oil-Production-Plans.html