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As Energy Prices Keep Rising, OPEC+ Boosts Production

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In July and August, OPEC+ will increase production by 648,000 barrels per day. This will slightly help the global economy since rising energy prices and inflation are having a big impact on it.

The decision was made on Thursday to speed up the process of restoring cuts made while the pandemic recession. Each month, the alliance had been adding consistently 432,000 barrels per day to slowly recover the production cuts.

The elevated prices are also a problem for U.S. President Joe Biden and the upcoming midterm Congressional elections.

With Saudi Arabia as its de facto leader, OPEC had been resisting White House demands for months to expand oil output quicker, plus agreeing to stop oil imports from Russia is what has pushed oil prices up. Also, due to the lack of refinery capacity to transform crude oil into motor fuel, the price of gasoline and diesel has also been rising.

White House press secretary Karine Jean-Pierre said in a recent statement that “The United States will continue to use all tools at our disposal to address energy prices pressures.”

The Biden administration has recently been to Saudi Arabia to discuss energy supply and regional security concerns with Saudi Arabian government leaders.

According to AAA, the average price of gas in the United States hit a record high of $4.71 a gallon on Thursday. Prices are expected to rise even further once the summer season begins.

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Written by Olivia Woods

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