At a time when high oil prices and unstable energy supplies have been exacerbated by Russia’s war on Ukraine, OPEC and its allies decided to slow production growth in September, AP reported.
In July and August, the OPEC+ coalition increased output by 648,000 barrels per day (bbl/d), so it will increase output to 100,000 bbl/d next month. With gasoline prices still high, the group considered the effects of staggering inflation and rising COVID-19 rates on global fuel demand in the fall.
While oil prices and demand plummeted during the pandemic, OPEC and its allies, led by Russia, curtailed production. These cuts expire in September. As economies recovered, OPEC+ gradually increased the supply of oil and gas.
Some members of OPEC, including Angola and Nigeria, have been producing less than planned. On the other side, it is uncertain if Saudi Arabia and the United Arab Emirates will desire to expand output despite having the ability to do so.
The OPEC+ group’s leader, Mohammad Sanusi Barkindo, passed away at age 63, and this was the first scheduled monthly gathering since his passing. This week, OPEC’s Secretary General was replaced by Haitham al-Ghais, a former employee of the Kuwait Petroleum Corporation.
Additionally, it was OPEC’s first meeting following by US President Joe Biden’s visit to Saudi Arabia last month, which aimed to strengthen ties and encourage the cartel to increase oil production.