This development represents another setback for the US administration led by Joe Biden, which had hoped that OPEC would be able to increase production to offset Russian supply disruptions and slow the rise in fuel costs and inflation in its broader measures, according to Reuters.
The Russian Interfax news agency quoted a source familiar with the data as saying that the rate of production shortfall in “OPEC +” jumped to 320 percent in June, from 256 percent in May and 220 percent in April.
She also said that the shortfall in the production of the “OPEC +” group from the planned levels amounted to 2.84 million barrels per day last month.
Most of the OPEC producers have suffered from a chronic underinvestment due to falling prices in recent years as well as pressure on investors to abandon fossil fuels and find alternative sources of energy.
Sources told Reuters that “OPEC +” will consider keeping the production rate unchanged in September when it meets next week, despite calls from the United States to pump more supplies, but the meeting is also likely to discuss a slight increase in production.
The Russian government said in a statement on Friday that it and Saudi Arabia were still firmly committed to the goals of the “OPEC +” agreement to maintain market stability and achieve a balance between supply and demand in global oil markets.
By next month, the (OPEC) and its allies led by Russia, the group known as “OPEC +”, will have completely ended the production cuts carried out since the Covid-19 pandemic in 2020.
Oil prices rose in 2020 to their highest levels since 2008 and crossed $139 a barrel in March after the United States and Europe imposed sanctions on Russia over the Ukraine crisis.
Prices have since fallen back to hover around $100 on growing fears that sharply higher inflation and higher interest rates will lead to a recession that will dampen demand.
The “OPEC +” alliance maintained its policy to increase production for the month of August by 648,000 barrels, unchanged, despite the demands of consuming countries to increase production to calm prices.
The “OPEC +” alliance, which includes Russia, will meet on August 3 to review the monthly production policy.
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