International Oil Prices Plunge 3.2% Amid Possibility of Production Increase

[Asia Economy Reporter Changhwan Lee] International oil prices plunged due to the possibility of increased production.

On the 26th (local time) at the New York Mercantile Exchange, the price of April West Texas Intermediate (WTI) crude oil closed at $61.50 per barrel, down $2.03 (3.2%).

The main reason for the decline in oil prices is the expectation that OPEC+ (Organization of the Petroleum Exporting Countries and major oil-producing countries including Russia) will increase production starting in April.

OPEC+ plans to meet on April 3-4 to decide on production policies. There have been forecasts that they will decide to increase production by 500,000 barrels per day in April. Additionally, there is speculation that Saudi Arabia may withdraw its voluntary production cut of 1 million barrels per day, which was maintained until March, starting in April.

The recent sharp rise in oil prices, recovering to the mid-$60 per barrel range, has also led to profit-taking movements, adding pressure.

Although U.S. oil production facilities were hit by a cold wave, refining facilities were similarly damaged, which could disrupt demand for some time, also weighing on oil prices.