London, (Business News Report)|| The OPEC+ alliance is scheduled to raise production during the month of July by 648,000 barrels per day, according to Reuters.
The agency said that the increase recommended by the Ministerial Committee of the OPEC+ alliance comes after news that Saudi Arabia is ready to pump more crude to make up for any shortfall in Russian exports.
The coalition led by Saudi Arabia and Russia decided to slightly increase production last month, at a rate of 430,000 barrels per day, which boosted the rise in oil prices.
However, oil prices recorded a decline on Thursday after the British The Financial Times quoted sources that Riyadh is determined to compensate for any shortage in Russian oil supplies, due to the sanctions imposed on Moscow.
US West Texas Intermediate crude futures fell 2.05% to $112.90 a barrel, while Brent crude futures fell 1.92% to $114.06 a barrel, according to Bloomberg website data.
The Wall Street Journal said last Tuesday that some members of OPEC are studying a proposal to freeze Russia’s participation in the decision to cut production, which has been in place for two years, and pointed out that the move would pave the way for Saudi Arabia and the UAE to increase their production.
In the three months following the Russian invasion of Ukraine, the OPEC+ alliance repeatedly refused to pump more crude to allay post-war concerns about global energy supplies, which have reached record levels per barrel.
The OPEC+ alliance has repeatedly said that the increase in prices is not related to production, but rather to the turbulent geopolitical situation, and stressed that the decisions to extend production cuts aim to restore balance to the market, and that it is not a political decision.
But the past few days have witnessed many leaks regarding a possible meeting between US President Joe Biden and Saudi Crown Prince Mohammed bin Salman, in addition to talk of Washington making new security pledges to the UAE.
The two Gulf countries can make up for any potential shortfalls in energy supplies, in which Russia plays a major role at the global level.
Oil prices reached record levels due to fears imposed by the Russian-Ukrainian war on oil supplies to the European market.