U.S. welcomes OPEC+ move to boost oil supply

Shafaq News / OPEC+ agreed to increase the size of its oil-supply hikes by about 50%, in a deal that kept Russia at the heart of the cartel while also heeding pressure from major consumers including the US.

Ministers approved production increases of 648,000 barrels a day of oil for July and August, up from recent monthly hikes of 432,000 barrels a day. Moscow gave the plan its full backing and talks were concluded in just 11 minutes, delegates said, asking not to be named because the information was private.

The United States welcomes the decision by OPEC+ nations to increase oil supplies, the White House said in a statement on Thursday that also recognized the roles of Saudi Arabia, the United Arab Emirates, Kuwait and Iraq in securing consensus.

Oil had fallen before the meeting on reports that Saudi Arabia and other members were prepared to fill the gap in the market created by Western sanctions on Russian oil, or even remove the country from the OPEC+ quota system altogether. After the agreement, crude reversed its losses in New York and was 0.7% higher at $116.03 a barrel as of 9:35 a.m. local time.

Thursday’s agreement “is a pretty minor tweak” to the existing OPEC+ deal, said Bill Farren-Price, a director at Enverus Intelligence Research. “But it is a nod toward looming tight balances later this year, when the EU sanctions on Russia start having an impact.”