OPEC+ agrees small oil output rise despite Biden plea

News Image

By MG News | August 03, 2022 at 11:56 PM GMT+05:00

0:00

Aug 03, 2022: The OPEC+ oil cartel agreed to a tiny increase in production Wednesday, an amount analysts say will disappoint US President Joe Biden after he personally lobbied Saudi leaders for help to tame soaring energy prices.

The cartel led by Saudi Arabia and Russia decided to raise production by 100,000 barrels per day for September, much lower than previous increases, according to a statement issued after a ministerial videoconference.

Oil prices seesawed following the announcement, rising before falling more than one percent in afternoon trading, with the main international contract, Brent, slipping under $100 per barrel.

"The smallest increase in OPEC+ history will do little to help the ongoing global energy crisis," Edward Moya, analyst at OANDA trading platform, told AFP.

"The Biden administration will not be happy and this will be a setback in improving US-Saudi relations," said Moya, who expects oil prices to remain stuck around $100.

With energy prices soaring following Russia's war in Ukraine, Biden made a controversial trip to Saudi Arabia in July in part to convince the kingdom to loosen the production taps to stabilise the market and curb rampant inflation.

The US president met Crown Prince Mohammed bin Salman despite his promise to make the kingdom a "pariah" in the wake of the 2018 killing of journalist Jamal Khashoggi.

Biden said after his meetings with Saudi officials that he was "doing all I can" to increase the oil supply.

"A 100,000 barrel per day output hike is a pittance," said Han Tan, chief market analyst at Exinity.

"It's likely that the Biden administration will feel let down, considering its overtures to Saudi Arabia have yielded scant results, at least this time around," Tan said.

AFP/APP

Related News

Name Price/Vol %Chg/NChg
KSE100 130,686.66
280.01M
0.26%
342.63
ALLSHR 81,305.25
897.01M
0.35%
281.26
KSE30 39,945.45
114.02M
0.09%
37.19
KMI30 190,698.05
148.61M
0.61%
1163.05
KMIALLSHR 55,074.15
495.43M
0.53%
290.50
BKTi 34,568.40
28.73M
-1.07%
-372.33
OGTi 28,739.35
22.59M
1.57%
443.29
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 110,180.00 110,525.00
110,105.00
-235.00
-0.21%
BRENT CRUDE 68.77 68.89
68.73
-0.03
-0.04%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
-0.75
-0.76%
ROTTERDAM COAL MONTHLY 108.45 109.80
108.45
-0.55
-0.50%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.03 67.18
66.99
0.03
0.04%
SUGAR #11 WORLD 16.37 16.40
15.44
0.79
5.07%

Chart of the Day


Latest News
July 03, 2025 at 10:04 PM GMT+05:00

SBP reserves rise around to $13bn


July 03, 2025 at 05:39 PM GMT+05:00

Gold price in Pakistan rises Rs800 per tola


July 03, 2025 at 05:17 PM GMT+05:00

Microsoft exits Pakistan after 25 years


July 03, 2025 at 04:43 PM GMT+05:00

Privatisation Commission approves advisors for ZTBL


July 03, 2025 at 04:11 PM GMT+05:00

PSX Closing Bell: Holding Ground



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg