The decision is a serious negative for the oil market, given that oil demand is rising too slowly to sop up all of the extra supply.

Oil prices fell on Monday afternoon to their lowest level of the year after the OPEC oil cartel and its allies affirmed plans to gradually increase crude production beginning in April.

OPEC+ has decided to proceed with a planned April oil output increase, three sources from the producer group told Reuters on Monday.

OPEC+ has finally decided to go through with its long-delayed oil production increase, adding about 138,000 barrels per day to its production plans beginning in April

OIL prices fell about 2 per cent to a 12-week low on Monday (Mar 3) on reports Opec+ will proceed with a planned oil output increase in April and worries US tariffs could hurt global economic growth and oil demand.

The planned increase is set at 138,000 barrels per day, according to calculations by financial analysts. Eight OPEC+ members, responsible for the most recent layer of output reductions, agreed to this increase during a virtual meeting.

Oil futures declined Monday after OPEC+ said it will boost output starting in April, and as President Donald Trump’s planned tariffs on imports from Canada and Mexico threatened to slow demand for energy.