OPEC+ Agrees to Small Oil Output Increase

OPEC+ has agreed to a minimal oil output increase after months of diplomatic efforts by US President Joe Biden. 

OPEC+ agreed that they would increase output by just 100,000 barrels a day, or 0.1 per cent of global demand.

“From a global balance perspective, today’s minuscule quota increase — the smallest since 1986 in absolute terms and smallest ever in percentage terms — is noise,” said Bob McNally, president of Washington-based consultant Rapidan Energy Group.

According to the International Energy Agency, Middle East idle oil supplies are down to about 2 million barrels a day, or 2% of world demand.

OPEC warned that they had to consider “the severely limited availability of excess capacity” of their oil supplies and that they would use it with caution. 

Brent crude futures have slid down $3.76, or 3.7%, to $96.78 a barrel as of Wednesday after US oil stocks rose 4.5 million barrels last week.

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