OPEC decides to increase oil production

AFP – After months of waiting despite the rise in prices caused by the war in Ukraine, OPEC+ members decided this Thursday to go up a gear and increase their oil production, responding to pressing calls from Western countries.

The representatives of the 13 members of the Organization of Petroleum Exporting Countries (OPEC) and its 10 partners (OPEC+) agreed that “July production would be adjusted upwards of 648,000 barrels per day”, compared to the 432,000 barrels set in the months earlier, announced the alliance in a statement after a brief meeting.

The European Union’s announcement last Monday of a partial embargo on Russian oil increased fears of a shortage and changed the attitude of the cartel, which stressed “the importance of stable and balanced markets”.

The decision represents a turnaround for OPEC+, which since the spring of 2021 had limited itself to slightly increasing its quotas, to recover the levels prior to the covid-19 pandemic.

Until now, the group had never abandoned that line of action, not even after Russia began its invasion of Ukraine, which increased tensions in the market.

The announcement pleased investors: crude oil prices were up nearly 1%, with both benchmarks trading around $116 a barrel.

A Wall Street Journal article had mentioned the possibility of Russia being cut out of the group, following Western sanctions, but OPEC+ remained unchanged.