After months of high gasoline prices, uncertain energy supplies, as well as the ongoing conflict between Russia and Ukraine, OPEC and its allies decided on Wednesday to increase production in September.
Next month, OPEC and its partners will increase output by 100,000 barrels a day, following the 648,000-barrel-per-day increase in July and August. The group also examined the impact on global fuel demand of rising COVID-19 rates and soaring inflation in the fall.
Earlier this month, President Joe Biden went to Saudi Arabia with the purpose of strengthening ties and encouraging the cartel to increase oil output in an effort to lower pump prices. Even though gas prices have dropped, they remain high, which is a political issue for him given the recent increase in inflation.
Biden predicted that OPEC would take steps to increase output in the coming weeks even though no agreement on oil production had been revealed following their meeting.
“The U.S. may go looking for other sources of oil, whether it’s Venezuela or Iran,” said managing director at Clearview Energy Partners, Jacques Rousseau.
Biden’s administration is also encouraging the United States oil and gas business to enhance production.
“You’ve just seen the second-quarter results from some of these companies. They are record profits,” a senior adviser for energy security at the State Department, Amos Hochstein, said Wednesday. “They should be investing those dollars right back into production increases.”
Original source material for this article taken from here