stockmarketwalk After Joe Biden’s trip to Saudi Arabia, the organization OPEC+ announced to raise its oil output goal by 100,000 barrels per day. This increase will be one of the smallest since OPEC quotas were introduced in 1982.
The increase is equivalent to 0.1% of global demand.
That is so little as to be meaningless
said Raad Alkadiri, managing director for energy, climate, and sustainability at Eurasia Group.
According to experts, although the amount of increase is not high, but it is an increase at least. The Biden’s administration has been working since months to expand the oil supply within the organization to help the United States and the global economy.
The U.S. economy faces 40-year highs inflation rate among others because of the galloping energy prices.
The decision is to calm down the United States. And not too big that it upsets Russia
said an OPEC+ source.
100,000 barrels corresponds to only 86 seconds of global oil demand.
The military conflict in Ukraine and the shortage of spare supply added fuel to the fire and boosted the inflation. OPEC+ has the concern that global supply might not be able to meet demand after 2023 because of the permanent shortage of adequate level of investment in the oil sector.
Key takeaways
- OPEC+ increases oil production by 100,000 barrels per day from September
- it is equivalent to 0.1% of global demand
- Biden’s administration working on improving the oil supply
Source: Reuters
Picture: Freeimages
