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 a day in September.
The price of Brent crude, the global benchmark, also peaked at $139 a barrel in March in the days following Russia’s invasion of Ukraine, but Brent now trades around $100 as traders fear a global recession could hurt demand.
Brent crude and West Texas Intermediate crude – the North American benchmark – both rose almost 2% on Wednesday after OPEC’s announcement, with oil investors expecting a bigger increase in production.
Oil stocks ‘at a critical level’
Still, OPEC on Wednesday expressed concerns that global supply will not be able to meet demand after 2023.
He said emergency oil stocks among the 38 countries belonging to the Organization for Economic Co-operation and Development, which includes 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 extremely low” and posed a particular risk to emerging economies.
On Wednesday, OPEC said the productive capacity of many of its members was “severely constrained” due to “chronic underinvestment in the oil sector”.