The Organization of the Petroleum Exporting Countries (OPEC) Plus is set to raise its oil production target by 100,000 barrels per day, which analysts described as an insult to US President Joe Biden’s visit to Saudi Arabia.
The leading oil producer had to call for aid to support the US and the world economy.
According to foreign news agency Reuters, the increase is equivalent to 86 seconds of global oil demand per day and comes after weeks of speculation that Joe Biden will visit the Middle East and Washington will visit Riyadh and the United Arab Emirates.
Approval of the sale of missile defense systems to the Emirates will bring more oil to the global market.
The 100,000-barrel-a-day increase would be the smallest increase since OPEC quotas were introduced in 1982, OPEC data showed.
The group, known as OPEC Plus, led by the Organization of the Petroleum Exporting Countries and its ally Russia, which was formed in 2017, has been increasing output by about 4.3 million to 6.5 million barrels a month as they have locked a record cut in supply was introduced due to the downturn.
However, they had to struggle to meet full targets as most members had exhausted their productivity after years of under investment in new capacity.
A lack of additional supply, hampered by Russia’s invasion of Ukraine in February, has weighed on energy markets and fueled inflation.