The OPEC and allied producing countries including Russia agreed to hike oil output the next two months as Russian production begins to drop.
The petroleum exporting countries group known as OPEC+ will increase production by 648,000 barrels per day in July and August, ending the historic output cuts implemented during the covid pandemic. The move aims to fight surging oil prices and inflation.
White House press secretary Karine Jean-Pierre said the administration welcomed the announcement.
“This announcement accelerates the end of the current quota arrangement that has been in place since July of last year and brings forward the monthly production increase that was previously planned to take place in September,” Jean-Pierre said in a statement. “We recognize the role of Saudi Arabia as the chair of OPEC+ and its largest producer in achieving this consensus amongst the group members.”
The decision comes as the world grapples with surging energy prices and the European Union implementing embargos on Russian oil, which is the world’s third top producer and exporter.
The OPEC+ decision comes after several governments have been calling on producers to raise output as Russia’s invasion of Ukraine keeps impacting global energy markets.
The oil producer group has been slowly returning the nearly 10 million barrels per day it agreed to pull from the market in April 2020.