OPEC+ agrees to raise crude productions amid Russia-Ukraine tensions

• Crude prices have jumped to record highs as many OPEC+ members fail to meet targets

• OPEC+ partners have agreed for the return of 400,000 barrels per day for March

The OPEC+ nations agreed to increase the crude oil production in a planned and controlled manner, as supply concerns increased due to an imminent war between Russia and Ukraine.

Crude prices have hit record levels prompting OPEC and non-OPEC partners to give the go-ahead for the return of 400,000 barrels per day for March.

Also Read: Brent crude futures top $90 for the first time since 2014

On Wednesday, West Texas Intermediate edged lower 0.2% after hitting its highest level since 2014 earlier in the session, while global benchmark Brent crude traded near $89 a barrel.

Fueling the price rise

Rising oil prices have fueled inflation around the world, including in the U.S. and Europe, due to soaring energy costs. Crude prices have jumped to seven-year highs as several OPEC+ members have been unable to meet their share of output as global demand picks up.

This includes top African producers Nigeria and Angola, who are struggling to go back to pre-pandemic output levels after years of underinvestment. Even Russia in December pumped below its OPEC+ quota for the first time since the group cut output.

Crude prices have soared higher in 2022 after jumping 55% last year. Bloomberg analysts outlined the reasons for the jump in prices attributing to the steady global revival in demand, lower stockpiles and sporadic interruptions to supplies.

Geopolitical tensions including the ongoing Russia-Ukraine situation as well as the recent attack by Houthi militants on United Arab Emirates (UAE) capital, Abu Dhabi, have also boosted prices in recent weeks.

Also Read: U.S. oil producers expand well completions as oil prices soar

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