Even though oil prices have surged to ten-year highs, a powerful cartel of oil-producing countries say they will only increase their output by a modest amount.
The Organization of the Petroleum Exporting Countries and its allies, led by Russia, known as Opec+, will not be turning on the taps.
The 23-country-strong cartel will add 400,000 barrels of oil per-day to the market from April.
The group is sticking firmly to an agreement signed by its members in 2021 – to continue gradual restoration of output that was halted during the pandemic. Many countries produced fewer barrels of oil during the pandemic as demand dropped sharply during lockdowns.
However, following Russia’s invasion of Ukraine the global benchmark contract for oil, Brent crude, has surged to $119 a barrel, driven by anxiety over tighter supply.
Opec+ released a statement attributing the recent rise in prices to market volatility caused by “current geopolitical tensions” and stated that there was no shortage of supplies in the market.