OPEC’s Gulf Nations Boost Oil Production to Relieve Tight Market - Bloomberg

OPEC’s Gulf Nations Boost Oil Production to Relieve Tight Market - Bloomberg

OPEC’s crude production rose to a two-year high last month as Persian Gulf members followed through on a pledge to relieve tight global markets.

The Organization of Petroleum Exporting Countries added 270,000 barrels a day in July, with group leader Saudi Arabia accounting for about two-thirds of the increase, according to a Bloomberg survey.

OPEC and its partners have agreed to accelerate the return of the last of the supplies halted during the Covid-19 pandemic, as peak summer demand and global output disruptions push fuel prices to levels that threaten the global economy. The alliance meets on Wednesday to consider its next move.

While US President Joe Biden said he expected “further steps” from the Saudis after visiting the kingdom last month, Riyadh has been circumspect about its plans. Several OPEC+ delegates said the group may keep production steady when it calibrates September levels this week, conserving spare capacity in case it’s needed later.