OPEC+ agrees that oil production will remain unchanged despite Iran tensions
OPEC+ decided to keep its oil production unchanged for March during a meeting on Sunday, the producer group reportedly said. This was despite crude prices hitting six-month highs due to fears that the U.S. might launch a military attack on OPEC's member Iran. Brent crude oil closed at $70 a barge on Friday, near the $71.89 high it reached on Thursday. The eight OPEC+ member countries met as prices rose to a six-month peak.
Saudi Arabia, Russia and the United Arab Emirates along with Kazakhstan, Kuwait, Iraq, Algeria, Oman, and Kazakhstan have all increased their production quotas from April to December 2025 by approximately 2.9 million barrels a day, or about 3% of total global demand.
Due to seasonal lower consumption, they frozen further planned increases from January through March 2026.
The brief Sunday meeting "reaffirmed" that decision, which was made earlier for both January and February.
No Forward Guidance
The Sunday statement did not mention what OPEC+ might decide in specific'months' beyond March. This lack of guidance is important, according to Jorge Leon, a formerly OPEC official and now head of geopolitical -analysis at Rystad.
He said that "with rising uncertainty about Iran and U.S. tensions, the group keeps all options on the table."
"OPEC's numbers indicate a lower estimate for OPEC+ Crude in the second quarter. This could limit the scope of production increases," Leon said.
OPEC+ is made up of the Organization of Petroleum Exporting Countries, plus Russia and its allies. OPEC+ as a whole pumps around half the world's crude oil.
On Sunday, a separate OPEC+ group called the Joint Ministerial Monitoring Committee met. The JMMC has no decision-making power on production policy.
A statement on OPEC’s website stated that the JMMC stressed how important it is to achieve full compliance with OPEC+ agreements.
Both sides show willingness to talk. U.S. president Donald Trump is considering options for Iran, including targeted strikes against security forces and leaders in order to inspire protesters.
Washington imposed extensive sanctions against Tehran in order to choke off the oil revenue that is a vital?source of funding for the state. Since then, both the U.S.and Iran have expressed a willingness to engage in dialogue. However, Tehran said on Friday that its military capabilities should not be considered in any discussions. The oil prices are also supported by the supply disruptions in Kazakhstan. Kazakhstan announced on Wednesday that it would restart the massive Tengiz Oilfield in phases.
Statements showed that the eight countries planned to meet on March 1, and the JMMC will be held on April 5. Reporting from Olesya Astakhova, in Moscow; Alex Lawler in London; Ahmad Ghaddar writing; David Holmes and Alexander Smith editing.
(source: Reuters)
