Oil prices rise: OPEC members met today

While oil prices were previously on the rise following the lifting of health restrictions related to the pandemic, the war in Ukraine has aggravated the rise in its price to a stage that alarms the international community.

Indeed, the numerous economic sanctions against Russia have disrupted the pace of energy supply to its neighbors. The market now fears the total interruption of Russian exports, especially since the country-continent is the second largest exporter of oil in the world, and represents more than 40% of the annual imports of natural gas of the European Union.

OPEC, for a sustainable solution

In order to counter the negative effects of such an upheaval and to fight against the shortage, the International Energy Agency plans to release 60 million barrels from its emergency reserves. The United States has also pledged to release an additional 30 million barrels to stabilize the global market.

 

 

Finally, OPEC met today with Russia. The discussion focused on the possibility of increasing production to temper the rise. The 23 exporting countries, which together account for more than half of the world’s oil supply, will increase production by 400,000 barrels per day next month. Saudi Arabia has already taken on the role of “swing producer”, a buffer producer that has a major influence on price formation.

As OPEC members, Kuwait, Saudi Arabia, the United Arab Emirates and Iraq will play a decisive role.