With Global Energy Markets Being Rocked By The Russia - Ukraine War, OPEC Will Increase Its Output By A Small Amount This Summer

 

CNBC: OPEC+ raises output faster than expected as Russia’s war roils global energy markets 

* OPEC and its oil-producing allies agreed to hike output in July and August by a larger-than-expected amount as Russia’s invasion of Ukraine wreaks havoc on global energy markets. 

* OPEC+ will increase production by 648,000 barrels per day in both July and August. 

* The group has been slowly returning the nearly 10 million barrels per day it agreed to pull from the market in April 2020. 

OPEC and its oil-producing allies agreed on Thursday to hike output in July and August by a larger-than-expected amount as Russia’s invasion of Ukraine wreaks havoc on global energy markets. 

OPEC+ will increase production by 648,000 barrels per day in both July and August, bringing forward the end of the historic output cuts OPEC+ implemented during the throes of the Covid pandemic. 

The group has been slowly returning the nearly 10 million barrels per day it agreed to pull from the market in April 2020. In recent months, production has risen between 400,000 and 432,000 barrels per day each month.  

Read more .... 

Update #1: OPEC+ alliance boosts oil production as energy prices soar (AP)  

Update #2: Oil Jumps After OPEC+ Agrees To Boost Output By 648K Barrels (Zero Hedge)  

WNU Editor: The White House was quick to react .... Biden administration THANKS Saudi Arabia and OPEC for increasing supply by 200,000 of oil barrels a day in July as gas prices hit another record and as White House faces questions on whether President will meet Crown Prince Mohammed bin Salman (Daily Mail). 

I am not impressed. 

The US is withdrawing a million barrels of oil from its strategic supply each day, and it ends this summer. China is opening up, thereby demanding the need for more oil. I expect prices will continue to either stay the same or rise. My money is on it rising. 

Now I know why the Russian Foreign Minister left Saudi Arabia three days ago with a big smile. He knew this small production increase was in the works, and he knew this increase will not impact demand for Russian oil in non-Western markets .... Russian And Saudi Foreign Ministers Meet To Discuss Oil Policy (June 1, 2022).