Oil prices have soared since the start of the conflict in Ukraine. Will the next few weeks be better? Answer here
Despite calls for more oil to be supplied to the market and diplomatic efforts, energy ministers from the thirteen countries of the Organization of Petroleum Exporting Countries (OPEC) and their ten allies, including Russia, agreed on Wednesday to a minimal increase in black gold production: it will be only 100,000 barrels per day in September, the smallest increase since 1986.
In June and July, the 23 countries had committed to increase production by 432,000 and then 648,000 additional barrels. They had thus returned to the production rate before the Covid pandemic.
Joe Biden's diplomatic efforts were not successful. In mid-July, the American president made his first visit to Saudi Arabia, the leading country of OPEC.
Moreover, the members of OPEC + are keen to spare Russia, an essential partner when it comes to reaching an agreement at the level of this organization. It seems quite clear that no decision to raise production can be taken without Russia.
As OPEC + stated in a statement, most members are at maximum production capacity and with "severely limited" reserves. Only Saudi Arabia and the United Arab Emirates would be able to supply more. Some countries, such as Angola and Nigeria, have not invested enough in oil infrastructure and are simply not in a position to increase production.
So the price of oil is not going to come down any time soon!