OPEC+ announces that it will increase crude oil production in July

After months of waiting despite the rise in prices caused by the war in Ukraine, OPEC+ members decided Thursday to increase their oil production, responding to calls from Western countries.

The representatives of the thirteen members of the Organization of Petroleum Exporting Countries (OPEC) and its ten partners (OPEC+) agreed that “the European Union’s announcement last Monday of a partial embargo on Russian oil increased fears of a shortage and changed the attitude of the cartel, which stressed “the importance of stable and balanced markets”. a statement.

The European Union’s announcement last Monday of a partial embargo on Russian oil raised fears of a shortage and changed the attitude of the cartel, which stressed “the importance of stable and balanced markets.”

The decision represents a turnaround for OPEC+, which since the spring of 2021 had limited itself to slightly increasing its quotas to recover pre-pandemic levels.

Until now, the group had never abandoned that line of action, not even after Russia invaded Ukraine, a move that accentuated tensions in the market.

The announcement pleased: crude oil prices rose nearly 1% with the two references marking around 116 dollars a barrel.

OPEC+, which extracts about half of the world’s oil, was formed in 2016 to adjust supply and regulate barrel prices.

However, some wonder how long the alliance will last, given the current circumstances.

After similar decisions were made by the United States and the United Kingdom, European Union leaders reached an agreement on Monday to reduce their imports of Russian oil by the end of the year.

So far, the Saudis have been unwilling to calm the market.

The immobility of the Gulf economies is also explained by the substantive benefits they obtain with a barrel of oil well above 100 dollars.

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