Saudi Arabia and the OPEC+ group of oil-producing countries agreed to a small increase of 100,000 bpd in oil production on Wednesday after the U.S. and other consuming nations called for more crude in the market, according to reports.
Despite higher prices, oil’s price on international indices has receded from multi-year highs seen in March. UK-based Brent Crude hit $123 dollars on March 7th, but settled around $100 today.
Per the WSJ:
“The Saudi-led Organization of the Petroleum Exporting Countries was under some pressure after President Biden said he expected Riyadh to help boost global supplies following a high-profile trip to the kingdom last month…OPEC needs to coordinate its production plan with a coalition of Russia-led producers with which it has an enduring alliance. Moscow prefers high prices.”
OPEC+ in June had agreed to boost output by 648,000 barrels a day in July and in August. Before that, OPEC+ rolled out monthly increases of 432,000 barrels a day as part of a plan to raise output to prepandemic levels, according to the report.
