OPEC is boosting production due to the shift away from Russian oil.

Global efforts are underway to reduce reliance on Russian oil as a response to the conflict in Ukraine. The EU has recently imposed a ban on a large portion of Russian oil imports, causing a spike in global gas prices due to Russia’s significant role in the oil market.

To counteract the price increase, OPEC and its partners have announced a plan to increase oil production during the summer months. They aim to ramp up production by approximately 648,000 barrels per day between July and August, reversing the production cuts made during the peak of the COVID-19 pandemic.

OPEC and allied countries, including Russia, will boost production by 648,000 barrels per day in July and August, providing some relief for the global economy grappling with high energy prices and resulting inflation. https://t.co/OqvPtm4Td4

— The Associated Press (@AP) June 2, 2022

The response to this announcement has been mostly positive, with the United States also planning to increase its own oil production. The White House applauded Saudi Arabia’s leadership within OPEC+ and expressed readiness to use all available tools to address energy price challenges.