OPEC+ Sticks to Small Supply Hike Even as EU Eyes Russia Oil Ban - Bloomberg

OPEC+ Sticks to Small Supply Hike Even as EU Eyes Russia Oil Ban - Bloomberg

OPEC and its allies once again ratified a small monthly increase in production, even as global markets look set to tighten because the European Union is considering banning supplies from Russia.

International consumers have called on Saudi Arabia and its partners to fill the gap left by a boycott of Russian crude and help ease the inflationary pain caused by prices near $110 a barrel.

But in yet another brief meeting, the Organization of Petroleum Exporting Countries and its allies rubber-stamped the standard 432,000 barrel-a-day increase for June, according to a statement from the group. That’s a volume analysts doubt they’ll even be able to deliver as most members struggle with capacity constraints.

Having rescued the world oil industry with massive production cuts in 2020, and shepherded the recovery last year by gradually returning barrels, OPEC+ is now seeing its relevance ebb as countries run into output limits. The cartel effectively failed to increase output at all last month, according to data compiled by Bloomberg.