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OPEC Prepares to Increase Oil Production in Summer
OPEC is boosting output as global shift away from Russian fuel intensifies.
With the aim of penalizing Russia directly and cutting off financial support for their war in Ukraine, nations worldwide are collaborating to distance themselves from Russian oil. Recently, the EU declared a ban on around two-thirds of Russian oil imports, permitting only nations with critical fuel needs to make purchases. However, due to Russia’s significant role in the global oil trade, these measures have led to a surge in gas prices.
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To counter the price surge, OPEC and its allies have announced plans to increase oil production during the summer to compensate for the absence of Russian oil. Between July and August, OPEC aims to boost production by an estimated 648,000 barrels per day, reversing the production cutbacks that occurred during the peak of the COVID-19 pandemic.
The OPEC oil cartel and its partners, including Russia, will boost production by 648,000 barrels per day in July and August, providing some relief for a global economy grappling with surging energy prices and resulting inflation. https://t.co/OqvPtm4Td4
— The Associated Press (@AP) June 2, 2022
The response to the announcement has generally been favorable, with the United States stating it will also boost its oil production. White House press secretary Karine Jean-Pierre remarked, “We acknowledge Saudi Arabia’s leadership role in OPEC+ and its significant contribution as the largest producer in reaching a consensus among the group members. The United States is committed to using all available measures to address energy price challenges.”
