OPEC+ nodded to raise output, world oil price… continued to increase

Oil US crude rose 1.9% to 117.45 USD/barrel in the session on June 2 (US time). Brent crude oil (the world benchmark) also rose 1.5% to $118/barrel, compared with $113/barrel earlier on the same day, according to Reuters. CNN.

Notably, the world oil price increased higher in the context that the Organization of the Petroleum Exporting Countries and its partners (OPEC+) agreed to increase production.

Specifically, OPEC+ will increase production by 648,000 bpd in both July and August. This also means the end of the historic production cuts that OPEC+ made during the Covid-19 pandemic. outbreak.

OPEC+ has slowly brought back to market the nearly 10 million bpd that it decided to cut from April 2020. In recent months, OPEC+ production has increased from 400,000 bpd to 432,000 bpd.

The decision was made by OPEC+ as the world was grappling with rising energy prices. Governments, including the administration of US President Joe Biden, have called on manufacturers to increase output in an effort to contain price increases.

White House press secretary Karine Jean-Pierre said the US administration welcomed the OPEC+ decision.

“We acknowledge the role of Saudi Arabia as the chair of OPEC+ and the largest producer in reaching consensus among group members,” said Karine Jean-Pierre, adding that the US will continues to use all its influence to deal with pressure on energy prices.

The fact that Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Iraq and OPEC + members agreed to increase production when EU leaders on May 30 agreed to ban 90% of Russian crude oil by the end of the year. 2022. This is the EU’s 6th package of sanctions against Russia since President Vladimir Putin launched a special military operation against Ukraine on February 24.

The war in Ukraine caused the price of crude oil in March to rise to a record high since 2008 and since then it has always remained above 100 USD/barrel. The dizzying increase in fuel prices is one of the main causes of global inflation at record highs in decades, according to CNBC.