OPEC+ to decide oil output to world amid high inflation

The OPEC oil cartel and its allies are meeting Wednesday to decide how much crude to produce in September amid high oil prices and unstable energy supplies exacerbated by the war Russia has waged on Ukraine.

They also will be considering what effects staggering inflation and rising COVID-19 rates may have on global demand for fuel in the fall, with gasoline prices at the pump still high.

OPEC, led by Saudi Arabia, and its allies, led by Russia, curtailed production during the pandemic as oil prices and demand plummeted, and those cuts are due to expire in September. The OPEC+ coalition has been gradually adding more oil and gas to the market as economies recovered.

At its last meeting, the OPEC+ coalition decided to boost production in August by 648,000 barrels per day. Some energy experts are expecting a similar production increase for September.

“We believe OPEC+ is trying to increase its September production target enough to placate its consumers that are concerned about higher petroleum prices and potential supply shortages, but not increase too much as to alienate OPEC+ member countries with limited capacity to raise production,” said Jacques Rousseau, managing director at Clearview Energy Partners.

Some OPEC nations, such as Angola and Nigeria, have been producing less than the agreed-upon amount. Saudi Arabia and United Arab Emirates, on the other hand, have the capacity to increase production, although it's unclear if they will want to.

Russia's oil and natural gas exports to the world have declined as many nations imposed sanctions or curtailed buying from the major supplier due to its invasion of Ukraine. Russia also has reduced or cut off natural gas to a dozen European countries, further driving up energy prices, squeezing people's spending power and threatening to cause a recession if nations can't...