Some OPEC+ delegates said they expect the organization to agree to a modest production increase when it meets this weekend to review its April policy.

According to three representatives, OPEC+ has not yet determined an action plan ahead of Sunday’s video conference. The escalating risk of conflict between the US and Iran also casts a shadow over the outlook. Nevertheless, although an oversupply is widely expected, strong oil demand has pushed prices up by about 17%. Several officials stated that they expect to begin a series of small price increases in April and once again emphasized the possibility of such actions. Some analysts said that OPEC+ might increase production by 137,000 barrels per day, consistent with the smallest increase at the end of last year. While well-known forecasting agencies have warned of a severe oversupply this year, this has so far not put pressure on oil prices. This is partly due to the intensifying geopolitical risks, as well as a series of production disruptions from North America to Kazakhstan and Russia. On Monday, US shale oil giant Diamondback Energy said that the wave of oversupply has been further delayed, and Baker Hughes, one of the world’s largest oilfield service providers, agreed with this view the following day.