A group of some of the world’s most powerful oil producers agreed on Wednesday to a further planned increase in output, even as crude prices trade near record levels amid geopolitical tensions.
The Organization of the Petroleum Exporting Countries and non-OPEC partners, an influential energy alliance known as OPEC+, swiftly decided to green-light the return of 400,000 barrels per day for March.
The move, widely expected by energy analysts, marks a continuation of the group’s strategy to gradually reopen the taps.
Led by OPEC standard bearer Saudi Arabia and non-OPEC leader Russia, the energy alliance is in the process of unwinding record supply cuts of roughly 10 million barrels per day. The historic production cut was put in place in April 2020 to help the energy market recover after the coronavirus pandemic cratered demand for crude.
OPEC+ has faced pressure from top consumers such as the U.S. and India to pump more to reduce prices and aid the economic recovery. The group has resisted calls for speedier increases despite higher oil prices.
Russian Energy Minister Alexander Novak has previously said the broader group does not wish to boost production levels too quickly as it remains wary of potential changes to demand.
International benchmark Brent crude futures traded at $90.29 U.S. a barrel on Wednesday afternoon in London, around 1.3% higher for the session and hovering slightly below the seven-year high of $91.70 reached last week.
U.S. West Texas Intermediate futures, meanwhile, stood at $89.60, up around 1.6%.
OPEC alone accounts for around 40% of the world’s oil supply.
