Eight OPEC+ member countries will go forward with plans to increase oil production amid President Donald Trump’s calls for reducing the cost of oil.
The organization, headed by Saudi Arabia and Russia, will move forward with their previous Dec. 5 decision to begin gradually increasing oil production in April, according to a Monday press release. The eight members met virtually to discuss global market conditions and future projections.
The end goal is to increase production by approximately 2.2 million barrels per day (mbd) between September and December of 2026 through incremental monthly hikes in the coming months. This will start with a 138,000 mbd increase in April, according to Bloomberg.
However, the member countries will continue to adjust their production based on changing economic conditions to keep the oil price stable, the organization claimed.
The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization created at the Baghdad Conference in September 1960, according to the group’s website. The goal of OPEC is to “co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers.”
OPEC+ is made up of the OPEC members, Russia and other countries. Additional countries that make up OPEC+, like Russia, are not full members of OPEC but still operate within agreements.
Trump called for OPEC to bring down the cost of oil in a Jan. 23 speech in Davos. He claimed lowing the price of oil would lead to the end of the Russia-Ukraine war. He also said he would “demand” interest rates to be cut if oil prices dropped.
President Donald Trump said he would ask Saudi Arabia and other OPEC nations to “bring down the cost of oil” as he addressed world leaders gathered in Davos. He also said he’d “demand that interest rates drop immediately” https://t.co/cOwzMzHVtE pic.twitter.com/ItU2me4vb9
— Bloomberg (@business) January 23, 2025
On Jan. 23, Saudi Arabia’s Crown Prince Mohammed bin Salman informed Trump of plans to expand upon investments and trade in the U.S. by approximately $600 billion — possibly more — in the coming four years in a phone call, according to Saudi Press Agency (SPA). They also discussed conflict in the Middle East and cooperation on combatting terrorism, the outlet reported.
This deal amounts to approximately 55% of Saudi Arabia’s entire gross domestic product (GDP), according to Bloomberg.
US President Donald Trump (R) shakes hands with Saudi Arabia’s Crown Prince Mohammed bin Salman in the Oval Office of the White House on March 20, 2018 in Washington, DC. (Photo by MANDEL NGAN/AFP via Getty Images)
OPEC+ cut oil production in 2022 and again in 2023 during the tenure of former President Joe Biden due to fears of an economic slump and concerns over decreasing demand for oil. (RELATED: OPEC+ Is Cutting Oil Production Again)
The oil market took a hit following the news from OPEC+ with the Brent Crude oil benchmark sitting at around $70 per barrel as of publication, according to Markets Insider.