Although the price of black gold fell slightly in recent days, it went up again by less than three percent on Tuesday. Nevertheless, the OPEC+ group is not planning a significant increase in production.
The Organization of Petroleum Exporting Countries and other OPEC+ countries (including Russia) will increase oil production only slightly. And that’s from the beginning of May at the earliest. While the current target is to get 400,000 barrels per day above the level of last August, the target is to increase to 432,000 barrels per day from May.
Who is the biggest oil producer?
The OPEC+ group did not make the decision based on requests from oil-importing countries, but as a result of its own calculations, Reuters reported, citing sources in Saudi Arabia, the group’s biggest oil producer. Moreover, the latter has made the increase in production conditional on greater Western support for the war in Yemen and security guarantees in the nuclear deal with Iran.
The fall in the price of oil
“The Saudis are cautious. They don’t want to increase oil production beyond the agreed plan because they don’t want to show they are against Russia,” the source cited by Reuters said. The price of oil has fallen in recent days on hopes of continued negotiations between Russia and Ukraine, but rose slightly again on Tuesday.
