Members of the Organization of Petroleum Exporting Countries (OPEC+) announced plans to increase oil production by over half a million barrels per day for September as concerns over supply disruptions persist. The move comes in response to US pressure on some nations, including India, to halt all Russian oil purchases.
The eight members of OPEC+ cited a healthy economy and low oil inventory as the reasons for the increase. Despite this, oil prices remain high at around $70 a barrel for Brent crude. This decision effectively ends OPEC+’s voluntary production cuts, which were set to phase out by September 2026.
OPEC+’s move has raised concerns that it could impact Russia’s other sales and negotiations. However, the US had previously looked into imposing tariffs on Russia or convincing countries still purchasing Russian oil to switch to other sources. Fears of higher gas prices for Americans appear to have been averted as OPEC+ agreed to increase production.
The US had also announced plans with Pakistan to develop their massive oil reserves, but it is unclear how this relates to OPEC+’s decision. Experts warn that new restrictions or tariffs could lead to higher energy prices and inflation concerns. The members of OPEC+ will meet again in September for further discussions and adjustments to production.
Source: https://www.newsweek.com/opec-countries-agree-boost-oil-production-2108265