OPEC+ agrees to boost September production by 188,000 barrels per day
The Organization of Petroleum Exporting Countries and its allies (OPEC+) agreed on Sunday to boost oil production by 188,000 barrels a day (bpd) from September, against a backdrop of disruption caused by the Mideast war.
OPEC+ has decided to increase oil production by 188,000 barrels per day (bpd) starting in September, in response to the ongoing Middle East conflict. This production adjustment was decided by seven participating countries. West Texas Intermediate (WTI) crude oil prices fell by 6.15% on the day, reaching $81.20. WTI, a high-quality crude oil known for its low gravity and sulfur content, is a significant benchmark in the oil market.
The oil prices are influenced by factors such as global growth, political instability, wars, and changes in the US Dollar's value, as Oil is primarily traded in US Dollars. The weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) also play a crucial role in determining WTI prices.
Changes in inventories, either a drop indicating increased demand or a rise indicating increased supply, impact the price. OPEC, a group of 12 oil-producing nations, collectively decides production quotas at twice-yearly meetings, with decisions often affecting WTI prices. When OPEC raises production, it leads to a decrease in prices, and vice versa when they lower production.
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