Finally, OPEC+ bows to pressure and increases oil production by 648,000 barrels per day – The Whistler Newspaper


The Organization of the Petroleum Exporting Countries and its allies said on Thursday they plan to boost oil production by 648,000 barrels a day in July and August, which could lead to a deal with the United States that could hit drive down crude prices.

The organization made the announcement in a statement at the 29th OPEC and non-OPEC ministerial meeting.

Oil prices, and therefore gasoline prices, have reached record highs since Russia’s invasion of Ukraine, which began in late February this year.

The Russian, according to statistics, has lost ten percent of its production since the start of the Ukrainian invasion because of the sanctions and could be hit harder if the European Union follows through on its threat to end its purchases from cause of the war.

Economic sanctions in the United States and other countries could take much of Russia’s oil off the market, creating an opportunity for big producers like Saudi Arabia.

Saudi Arabia-led OPEC had rejected a push by the United States and its allies to increase oil production. The Biden administration, however, sent a delegation to Saudi Arabia last month hoping to strike a deal.

OPEC had repeatedly avoided discussing the Ukrainian invasion with Russia, a key OPEC ally, suggesting it had nothing to do with market issues.

Saudi Arabia and the United Arab Emirates have large amounts of spare capacity that could be added quickly, while others have regularly missed their production forecasts.

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