OPEC+ insignificant increase in oil production

The total increase of 100,000 barrels a day of oil for 23 members is one of the lowest targets in OPEC+ history.

At the end of today's session, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to increase oil production by 100,000 barrels a day in September. This is much lower than the target of more than 600,000 barrels. barrels in July and August.

100,000 barrels is also one of the lowest increases in the group's history. This number will be divided among the 23 countries in OPEC+. In the context that only Saudi Arabia and the United Arab Emirates (UAE) are able to increase production, analysts believe that the actual increase will be insignificant.

It also erased expectations about the possibility of OPEC + increasing supply sharply after months of US diplomatic efforts . "This is the lowest increase since 1986, and as a percentage, the lowest in history," said Bob McNally, a former White House official. This insignificant increase will be difficult to appease consumers struggling with inflation due to soaring fuel prices.

After US President Joe Biden's visit to Saudi Arabia last month, US officials expressed optimism about OPEC + increasing oil production . The alliance has also shown goodwill towards consumers in recent months, as it has repeatedly announced increases in production targets.

However, before today's meeting, the countries hinted that oil demand was restrained due to the risk of recession in the US and China's anti-epidemic blockade orders made them hesitate to increase production.