29th OPEC and non-OPEC Ministerial Meeting to Begin

The 29th OPEC and non-OPEC ministerial (OPEC+) meeting will be virtually held today. The meeting comes after OPEC and a

29th OPEC and non-OPEC Ministerial Meeting to Begin | Photo: Reuters

The 29th OPEC and non-OPEC ministerial (OPEC+) meeting will be virtually held today.

The meeting comes after OPEC and a coalition of Moscow-led oil producers met last month and agreed to increase collective production to 432,000 barrels a day during June. The move addresses volatility in global oil markets following Russia’s invasion of Ukraine.

High oil prices—aided by strong consumer demand following the COVID-19 recovery and supply production cuts from OPEC—have resulted in windfall economic gains for many OPEC+ members. The IMF reports that oil exporters in the Middle East and North Africa received an estimated $320 billion more in oil revenue this year due to high oil prices.

Expect the OPEC+ members to agree to an additional increase in oil production. This comes after energy ministers of the G7 states urged OPFC to boost oil production to cool the price of crude oil. However, Russia, leveraging the West’s dependence on their oil and gas, will likely hope to maintain low production levels and high oil prices with OPEC+ support. Hence, as their military campaign stalls, Russia will look to optimize economic tactics to divide the West and force EU states to make concessions to relieve any long-term economic burden from high oil prices to their economies.

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