(Finance) – Opec +, the expanded cartel formation of oil producing countries, which also includes Russia, has finally accelerated the pace of increase in crude oil productionabandoning the minimal increase of 400 thousand barrels and announcing a 50% increase in production or 648 thousand barrels a day for the months of July and August.
A decision that responds to continuous US solicitationswho immediately applauded the decision, and Great Britain. Both had been asking OPEC for months for replace Russian productionespecially since the decision to increase the output crosses with thearrival of the sixth EU sanctions package in Moscow and with the gradual embargo on Russian crude oil.
The White House also announced that the President Biden is willing to visit Saudi Arabiaa clear sign of thaw in relationships with the Saudi Crown Prince Mohammed bin Salmanalthough it is not clear if and how much the OPEC member country will be willing to concede to the US.
Saudi Arabiaeven as the rotating presidency of OPEC, he nevertheless made it known that he was ready to increase production to compensate for Russian production. A very important political decision for the country, which had so far opposed increases in the production ceiling. Among the countries that still have one residual capacity to be used immediately there are only the United Arab Emirates and IraqWhile there appears to be no other excess capacity within the cartel, some members would even be struggling to align with the mini cut decided for May.
Despite the Opac + decision to increase production, the oil price shows no sign of decreasing, if not on a completely temporary basis and, after yesterday falling to 113 dollars a barrel, this morning shows a decrease of 0.43% to 116.35 dollars per barrel. A reaction also to the news of a decline in US crude oil inventories of 5.1 million barrels, well above market expectations.