There will be no adjustment in oil production plans. That’s the word from OPEC+ made during a review meeting on February 3, despite President Donald Trump urging the group to lower crude prices. OPEC production will remain the same.
OPEC production ramp-ups already put off three times
A panel led by Saudi Arabia and Russia confirmed plans to maintain current output levels for the rest of the quarter. It does plan gradual increases starting in April. The coalition has been limiting production for over two years to avoid a surplus. The group has already postponed its production ramp-up three times to stabilize prices.
“Despite some doubts, market fundamentals remain strong, as indicators of economic growth recovery are showing in several regions,” the Energy Ministry of OPEC member Algeria said in a statement. “We expect a greater recovery in demand for oil starting next April after a seasonal slowdown during the first three months of the year.”
“No discussion”
OPEC+ delegates said there was no discussion of President Trump’s request for more oil during the February 3 meeting. Instead, the Joint Ministerial Monitoring Committee focused on member countries’ compliance with current output cuts and compensation for past over-production.
The lack of action suggests OPEC+ is in no rush to appease Trump. Last week the president had urged the group to lower fuel prices. The cartel remains cautious about flooding the global market, particularly as demand weakens in China, the top consumer, while supply grows across the Americas.
Backing off Canada tariffs gives some states breathing room
Trump’s influence is already being felt, with the announcement of trade tariffs on Canada and Mexico. Yesterday Brent futures climbed above $77 per barrel. Last week, Trump called on OPEC to “cut the price of oil.”
OPEC+ delegates had already indicated no changes would be made at the review meeting. The cartel is possibly waiting for clarity on other Trump proposals. Those could include tariffs on China or tougher sanctions on Iran, Venezuela, and Russia.
“I don’t expect OPEC+ to heed Trump’s demands, or requests—whichever way you want to see it,” Vandana Hari, founder of Vanda Insights in Singapore, said in a Bloomberg television interview. “OPEC+ has been crafting its supply strategy very, very carefully, calibrating it very finely.”
After RVtravel.com’s publishing deadline yesterday(Feb. 3), the White House announced that it would not enforce its promised 25% tariffs against Canadian imports. Instead, it put it off a month. This should give Colorado and other Midwest fuel customers a break. Pump prices were expected to climb in the region. That area receives much of its crude oil from Canada.
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Good for them.
Turns out lowering 4 years of high gas prices may take more than 2 weeks. God bless him for trying tho. The 2,000,000+ acres re-opened for exploration and drilling today should see results at the pumps in about 6 months compounded by shutting down a few rogue nation’s exporting capabilities….. yup, 2 weeks might not quite be enough time but have no fear, it’s coming to pump near you.
Looking forward to the latest in fuel price news here in a few months. Guessing the narrative will have changed. IMHO. 😘
Most of the oil produced in the U.S. cannot be used for making fuel. Gasoline and diesel require “heavy” crude oil.
Most of the oil produced here is “light” crude.
These are used to make plastics and other petrochemical products.
Plus, almost half of the oil produce here is exported to other countries.
We imported 8.5 million gallons of oil per day and exported 10 million gallons.
The only thing that will happen if we produce more oil is the oil companies will just get richer by selling it overseas.
Yes indeed Bob. My view is somewhat basic and maybe a bit inaccurate but I think that while not fungible between the grades, the more light oil or heavy oil on the market the more the refined products are offset for the baseline of all the end use products. From Alberta and Alaska to Colorado and Texas, more in the baseline oil blood stream is better, including for both exports and imports.
Happy trails Bob🚍✌️
Hi Cancel:
Don’t forget the Bakken oil in western ND…. With a lot more to come!
Hi Doug:
Bakken production is on point and growing. Gulf of America, Wyoming, Louisiana, loving it. Welcome to the Golden Age.
On another subject can you believe the hysteria on opening the books this week and the unraveling the fraud. No one so far that I have heard is arguing to keep the waste programs in place but they sure are just angry at being exposed. Grift and graft up and down. I am truly excited for some forensic accountants to start backfilling and finding the end point recipients in Congress, of this money laundering enterprise. No wonder they wanted him in jail. Craziness. 100% Vindicated!!!
Absolutely agree Cancel! Long, Long overdue to expose all these expenditures of our tax money!
Hi Cancel… yes it sort of explains how some politicians get very enriched – we send money to needy countries and a politician or two get gold bars or Mercedes etc…. long overdue overhaul of some of these programs!
gas prices were lower. US kept increasing drilling and it’s the highest it has ever been. Now prices going up thanks to the unnecessary chaos of someone who has no intent on lowering prices of anything
I love this chaos. Turn on the lights and the cockroaches scramble. This has been the most amazing time to be alive in the last 80 years.
Founding 👍
End of slavery 👍
End of WWI 👍
End of WWII 👍
Deep State upheaval of 2025 👍
I feel so blessed to be living thru this period of our country being returned to the people by the dismantling of the administrative state.
Thank you, Russ and Tina! OPEC’s primary on-going concern is making sure that the various members adhere to their allocated production volumes and do not over-produce. Have a great day and safe travels!