Frankfurt, Feb. 2 (BNA): The Organization of the Petroleum Exporting Countries and allied producing countries are committing to cautious increases in the amount of oil they send to the global economy, a decision that is likely to support prices near their highest levels in seven years amid fears that this could happen. Russian military action against Ukraine.
An alliance of OPEC members led by Saudi Arabia and non-OPEC members led by Russia agreed on Wednesday to add 400,000 bpd in March.
That’s in line with the OPEC+ group’s plans to add that amount of oil each month and gradually restore significant cuts made during the depths of the coronavirus pandemic in 2020, The Associated Press reports.
The move comes as oil prices are hovering near their highest levels since 2014, driving up gasoline costs for drivers. US oil was trading up 1.2% to $89.28, while international benchmark Brent crude was priced at $90.09, up 1%.
OPEC+ has a stake in stable price developments: while higher prices benefit state budgets in producing countries, members may not want to see them reach levels above $100 a barrel, when they begin to erode demand from transportation and industry.
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