UPDATED 7:35 AM PT – Friday, June 3, 2022
OPEC and Russia have agreed to increase oil production amid an ongoing rise in global energy prices. During a meeting on Thursday, OPEC+ agreed to add 650,000 barrels per day to their current output quotas.
The increase in production is almost 50 percent more than expected as oil producing nations are raking in record profits. OPEC+ includes Saudi Arabia, Russia and more than 30 other oil producing nations.
The decision comes as Russia is diverting its oil exports to Asian markets amid US-led sanctions and a 50 percent rise in Moscow’s export revenues.
“And yet keep the group together, including keeping the Russians on his side because essentially he is bringing forward the deal…it’s slightly more production,” expalined Amrita Sen, Director of Research at Energy Aspects. “…the volumes actually going to hit the market are going to be very, very minimal.”
The 29th OPEC and non-OPEC Ministerial Meeting (#ONOMM) under chairmanship of KSA 🇸🇦Energy Minister HRH Prince Abdul Aziz Bin Salman and Russian 🇷🇺 DPM A.#Novak confirmed the decision to adjust upward the monthly overall production by 0.648 mb/d for the month of July 2022. pic.twitter.com/pgF68W2CZa
— Russian Mission Vienna (@mission_rf) June 2, 2022
Russian and Saudi officials said after the meeting that their latest decision reflects the best interests of both countries and their cooperation will continue.