NEW YORK: The leader of the Organization of the Petroleum Exporting Countries and its oil-producing allies are sticking with their plan to gradually increase oil production while Russia’s invasion of Ukraine rattles markets, reshapes alliances, kills civilians and sends the price of crude skyrocketing.
The OPEC+ coalition of oil producers — made up of OPEC members led by Saudi Arabia and non-OPEC members led by Russia — chose to increase oil production by 400,000 barrels per day in April.
Since July, the coalition has been adding that amount of oil each month to gradually restore deep cuts to production made early in the coronavirus pandemic when demand for fuel plummeted. People have been driving and flying more as COVID-19 restrictions have eased in parts of the world, but the amount of oil on the market has not kept up with demand.
Both US and international benchmark crude oil pushed past $110 a barrel Wednesday as investors worried about the invasion by Russia, one of the world’s largest energy suppliers. The coalition of oil-producing nations can benefit from high prices, but those high energy prices can backfire and push oil-consuming economies — their customers — into recession.
Before Russia’s invasion of Ukraine, the International Energy Agency asked OPEC+ to boost production beyond its planned increase, due to tight global oil supplies. The IEA took its own action to ease climbing prices Tuesday when the Paris-based organization, which…
