In this Feb 19, 2015, file photo, the sun sets behind an oil well in a field near El Tigre, Venezuela. (FERNANDO LLANO / AP)
VIENNA – The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, said on Thursday that they would stick to existing plans for modest oil production increases in June despite surging crude prices.
The alliance reconfirmed "the decision to adjust upward the monthly overall production by 432,000 barrels per day for the month of June 2022," according to a statement released after the 28th OPEC and non-OPEC Ministerial Meeting.
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OPEC+ noted in the statement "the continuing effects of geopolitical factors and issues related to the ongoing pandemic" on the oil market.
The alliance reconfirmed the decision to adjust upward the monthly overall production by 432,000 barrels per day for the month of June 2022
However, the alliance insisted that the oil market fundamentals and the consensus on its outlook still "pointed to a balanced market."
The decision came a day after the European Union on Wednesday unveiled a plan to phase out Russian oil imports, which pushed up oil prices amid heightened supply concerns.
The West Texas Intermediate for June delivery rose 5.3 percent to settle at $107.81 a barrel on Wednesday on the New York Mercantile Exchange, while Brent crude for July delivery increased 4.9 percent to close at $110.14 a barrel on the London ICE Futures Exchange.
In July 2021, OPEC+ agreed to raise oil output each month to gradually unwind the production cuts made at the height of the COVID-19 pandemic in 2020. The oil producer group has since been sticking to its plan despite calls from major consumers, including the United States, to further boost supplies to rein in soaring oil prices amid demand recovery and geopolitical tensions.
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OPEC Secretary-General Mohammad Sanusi Barkindo on Wednesday reiterated his calls on global leaders to uphold multilateralism to ensure "unhindered, stable and secure" energy flow to the global market.