Vienna: The OPEC group of oil-producing countries and its Russia-led allies agreed on another modest oil output increase on Thursday, ignoring Western pressure to significantly boost production as the Ukraine conflict has rocked prices.
The 13 members of the Saudi-led Organization of the Petroleum Exporting Countries and 10 countries spearheaded by Russia backed an increase of 432,000 barrels per day in May, marginally higher than in previous months. The group said in a statement following a ministerial meeting that the “continuing oil market fundamentals and the consensus on the outlook pointed to a well-balanced market”.
It added that the “current volatility is not caused by fundamentals, but by ongoing geopolitical developments.” The United States has urged OPEC+, as the alliance is known, to boost production as high energy prices have contributed to soaring inflation across the world, which has threatened to severely derail the recovery from the Covid pandemic.