The Organization of the Petroleum Exporting Countries and its allies have pushed for a small production increase, despite the expected global tightening due to sanctions imposed on Russia for its invasion of Ukraine.
- The OPEC+ ratified a 432,000 barrel-a-day jump next month, which is facing delivery doubts from analysts due to the capacity constraints being reported in most of the group’s members.
- The consortium has had increasingly short meetings since Russia decided to invade Ukraine in February, which has been generally ignored. It has yet to hold any press conferences to elaborate on its considerations.
- Data compiled by Bloomberg show that the group failed to increase its output in April, forcing countries to boost their output. This is contrary to earlier efforts to boost supplies during production cuts seen in 2020.
Analysts believe the group’s increase in supply recorded since the middle of last year seems to be running out of steam, with supplies now facing risks.
OIL is up 1.18%, while USO is up 1.10%.
Source: Organization of the Petroleum Exporting Countries