The major oil-producing countries of oil cartel OPEC and allies such as Russia are sticking to a limited increase in production. As a result, the high oil prices will probably not come to an end for the foreseeable future.
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OPEC+, as the alliance is called, will increase oil production in June by 432,000 barrels per day, just like in May. This does not change OPEC’s course, while analysts openly question whether it will be possible to deliver so much oil at all. Most major oil countries are struggling with capacity constraints.
Also read | OPEC countries meet to increase oil production
Import ban
Meanwhile, EU member states are discussing an import ban on Russian oil, which could only push oil prices further. OPEC secretary general Mohammad Barkindo said on Wednesday that it is not possible for other oil countries to replace Russia’s exports of more than seven million barrels a day.
Also read | Experts: effect of Russia’s oil boycott may be better than expected for the Netherlands
The United States had previously asked OPEC to ramp up production much more strongly. Then oil prices could fall again. But Saudi Arabia, for example, does not like that. Because of the war in Ukraine, Russia has recently been reluctant to make a case for a different course. OPEC also remains cautious due to the ongoing corona lockdowns in China.
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