OPEC confirms increase in oil production

The Organization of Petroleum Exporting Countries (OPEC), together with its 10 allies, confirmed that starting in April, oil production will grow by 400,000 barrels per day.

This increase had already been discussed previously in July of last year, and will continue in force despite the increase in the price of a barrel due to the situation between Russia and Ukraine.

The ministers indicated in their statement that consensus was created that at the moment the oil market “is well balanced, the current volatility is not caused by changes in market fundamentals, but by current geopolitical events”.

The response was as expected despite the situation, members of this organization, such as Saudi Arabia, assured there were no intentions to modify the route that had been agreed in August 2021.

The pace of the increase, of 400,000 b/d per month, is considered too slow by Washington and other consumer countries to curb the rise in “petro prices” and inflation, a trend exacerbated by the Russian invasion of Ukraine.

K. Tovar

Source: Bancaynegocios