OPEC+ countries agreed to stick to a planned crude output increase in August.
After a virtual meeting on Thursday, the group that gathers some of the world’s most powerful oil producers (OPEC and non-OPEC partners with Russia included) decided to follow the original plan to increase 648,000 barrels per day during August.
At the group’s last gathering in early June, OPEC+ decided to raise output by 648,000 barrels per day in both July and August, ending reductions implemented during the Covid pandemic.
The decision was welcomed by President Joe Biden’s administration, which has repeatedly pushed for the group to pump more oil and ease the market.
Facing uncertainty on how the war in Ukraine is going to further impact energy prices and central banks moving faster to control inflation, oil prices are becoming a top concern.
OPEC+ goal is to return the 10 million barrels per day pulled away from the market in April 2020.
Early this morning, international benchmark Brent crude futures traded at $115 a barrel, while WTI futures traded at $108.
President Biden will travel next month to the Middle East, including Saudi Arabia, where he is expected to discuss raising crude production. OPEC + next meeting would take place on Aug. 3.
