The major oil producing countries of the Organization of the Petroleum Exporting Countries and its allies such as Russia are committed to a limited increase in production. As a result, high oil prices will likely not end in the foreseeable future.
OPEC +, as the alliance is called, will increase oil production in June by 432,000 barrels per day, the same as in May. This does not change the course of OPEC, while analysts openly question whether this much oil can be delivered at all. Most major oil countries suffer from capacity constraints.
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import ban
Meanwhile, EU member states are discussing a ban on the import of Russian oil, which will only increase oil prices. OPEC Secretary-General Muhammad Barkindo said on Wednesday that it is not possible for other oil countries to replace Russian exports of more than seven million barrels per day.
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The United States had previously asked OPEC to increase production more aggressively. Then oil prices could drop again. But Saudi Arabia, for example, does not like that. Because of the war in Ukraine, Russia has recently been reluctant to make an argument for a different path. OPEC also remains cautious due to the ongoing coronavirus lockdowns in China.