OPEC+ agreed as expected to increase oil output quotas by 432,000 barrels per day (BPD) from May, as had broadly been expected by analysts, and as had been recommended by the group's Joint Ministerial Monitoring Committee, whose meeting concluded just minutes ago, reported Bloomberg on Thursday. The next OPEC+ meeting will be held on May 5. 

Thursday's OPEC+ meeting came against the backdrop of a large intra-day decline in oil prices as a result of sources reporting that the White House is considering a record oil reserve release of up to 180M barrels over the next several months (allegedly amounting to about 1M BPD). OPEC+ nations have up until now ignored calls from the US and other major oil-consuming nations (like India) to increase output at a faster pace.  

Market Reaction

Oil prices remain choppy and continue to trade close to session lows just above the $100 per barrel mark as traders weigh up evolving geopolitical risk, potential near-term supply increases as a result of large oil reserve releases and OPEC+ output policy.