OPEC+ Resolves to Gradually Increase Oil Output, Drops U.S. Monitoring Agency

OPEC+ has announced its decision to continue with its policy of gradually increasing oil output starting in April. The oil-producing consortium, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and other nations, also revealed a significant change in its monitoring approach. OPEC+ has removed the U.S. government's Energy Information Administration (EIA) from the list of sources it uses to track production levels and adherence to supply agreements.

The decision to exclude the EIA marks a notable shift in OPEC+'s strategy for ensuring compliance with its supply pacts. This move comes after a period of contentious interactions between OPEC+ and former U.S. President Donald Trump, who frequently criticized the group during his administration from 2017 to 2021. Trump had demanded that OPEC+ increase oil production to compensate for a reduction in Iranian supply caused by U.S. sanctions.

The essence of the group's policy is to carefully manage and incrementally increase oil output, a strategy reaffirmed with the April announcement. By removing the EIA as a monitoring source, OPEC+ is signaling its intention to rely more on internal mechanisms for tracking and compliance monitoring. This decision underscores the group's commitment to managing its production levels without external oversight.

OPEC+ has had a history of clashes with the U.S., particularly under Trump's presidency, when tensions rose over oil production levels and market control. The reduction in Iranian oil supply due to U.S. sanctions added another layer of complexity to the already intricate relationship between OPEC+ and the U.S. government.