The Organization of the Petroleum Exporting Countries and its allies — including Russia — also known as OPEC+, said on Wednesday it would produce an additional 100,000 barrels per day in September.
The price of Brent oil, the global benchmark, also peaked at $139 a barrel in March in the days after Russia invaded Ukraine, but Brent is now trading around $139 a barrel. $100 as traders fear a global recession will hurt demand.
Brent crude and West Texas Intermediate crude – the North American benchmark – both rose almost 2% on Wednesday after OPEC’s announcement, as oil investors expected a bigger increase in production.
Oil inventories ‘critically low’
Still, OPEC expressed concern on Wednesday that global supply will not be able to meet demand after 2023.
It said the emergency oil stocks of the 38 countries belonging to the Organization for Economic Co-operation and Development, including the world’s largest economies, are currently at their lowest level in more than 30 years.
Last month, the International Energy Agency warned in a report that “global oil inventories remain critically low,” posing a particular risk to emerging economies.
On Wednesday, OPEC said the production capacity of many of its members was “seriously limited” due to “chronic underinvestment in the oil sector”.