The OPEC+ group (composed of the Organization of the Petroleum Exporting States and other major producers) agreed to maintain a moderate increase in crude oil production in March to stabilize rising oil prices, DPA and Reuters reported.
The group has received calls from the United States, India and other states to pump more after the economies have recovered from the pandemic. The price of a barrel of Brent oil rose by 1% on Wednesday, exceeding $90 amid tensions in Europe and the Middle East.
But the OPEC+ group has decided to keep its target of increasing crude oil production by 400,000 barrels a day every month and said it was the fault of rising prices belongs to consumer countries that did not provide adequate investment in fossil fuels during their transition to green energy, according to Agerpres.
Many analysts compare the current situation with the crisis of 2007-2008, when the price of a barrel of Brent crude oil reached a record high of $147, after OPEC significantly increased deliveries to meet growing demand from China.
Crude oil prices rose by 50% last year amid coal and gas shortages, and the trend will continue this year, analysts say, and lack of production capacity and limited investment in the sector could drive Brent crude oil prices above of $100.
Although the Omicron version of the coronavirus has led to a significant increase in COVID-19 cases, analysts say oil prices will be supported by the reluctance of many governments to impose severe restrictions, such as those affecting the world economy in 2020.
OPEC+ is gradually easing production cuts implemented in 2020, when oil demand has plummeted. However, many small producers cannot increase deliveries and others are worried that they could pump too much oil if economic activity is reduced as a result of the pandemic.
“We do not want to see a price of a barrel of Brent crude oil above the $100 level, the world is not ready for that,” said Oman Oil Minister Mohammed Al Rumhi recently.
OPEC expects global oil demand to rise by 4.15 million barrels a day in 2022, to 100.8 million bpd in 2019.