OPEC+ sticks to modest oil supply increase despite high prices
A group of oil exporting countries known as OPEC+ agreed to stick to a modest supply increase despite high prices linked to Russia’s invasion of Ukraine.
OPEC+, which includes Russia as well as countries including Saudi Arabia and the United Arab Emirates, agreed to increase supply by just 432,000 barrels per day as the group slowly responds to coronavirus-linked demand cuts.
Their move comes as the price of oil from many countries has skyrocketed following Russia’s invasion of Ukraine. In the wake of the invasion, many buyers shied away from purchasing Russian barrels, increasing demand for barrels from elsewhere.
The move comes after at least one OPEC member, the UAE, said earlier this month that it wanted to increase oil production. But, a source told Reuters at the time that it also would not act unilaterally or go against the cartel.
The U.S. has signaled that it would support more OPEC+ output in light of the price hike caused by the invasion.
And on Thursday the U.S. also said it would release more of its own oil, from its Strategic Petroleum Reserve, into the market to combat rising gasoline prices.