OPEC+ Will Increase Oil Production by Only 100,000 Barrels a Day for September
OPEC+, the Organization of the Petroleum Exporting Countries and its allies, will add only 100,000 barrels per day of oil in September, despite President Joe Biden’s recent visit to Saudi Arabia pushing for an increased supply to alleviate ongoing high prices, according to a statement.
According to Bloomberg, this represents one of “the smallest oil production increases in its history,” while Reuters noted that it is “an amount analysts said was an insult to U.S. President Joe Biden after his trip to Saudi Arabia to ask the producer group’s leader to pump more to help the United States and the global economy.”
In a statement on Aug. 3, OPEC+ said that, “The meeting noted the dynamic and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions. The meeting noted that the severely limited availability of excess capacity necessitates utilizing it with great caution in response to severe supply disruptions.”
Edward Moya — senior market analyst for The Americas, OANDA — told GOBankingRates that, “The smallest increase in OPEC+ history will not move the needle in helping the world battle the ongoing global energy crisis.”
“The oil market will remain tight and that means we should still have crude prices stuck around the mid-$90s a barrel level as the global economic slowdown accelerates,” Moya added.
Bob McNally, president of Rapidan Energy Group and a former White House official, told Bloomberg: “From a global balance perspective, today’s minuscule quota increase — the smallest since 1986 in absolute terms and smallest ever in percentage terms — is noise.”
In a press conference in Jeddah, Saudi Arabia, on July 15, President Biden said, “We had a good discussion on ensuring global energy security and adequate oil supplies to support global economic growth.”
“… And that will begin shortly. And I’m doing all I can to increase the supply for the United States of America, which I expect to happen. The Saudis share that urgency, and based on our discussions today, I expect we’ll see further steps in the coming weeks,” he said, according to a transcript of his remarks provided via the White House website.
More From GOBankingRates