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OPEC+ resists Western calls for accelerated oil production

Source told Reuters the group, which includes Russia, did not bring up the Ukraine invasion and its impact on prices of crude

OPEC+ oil producers resisted calls to increase output beyond initial plans for a modest increase in barrels per day production, as oil prices hit a seven-year-high.

Sources told Reuters the group, which includes Russia, did not mention Ukraine at its latest meeting to determine production.

Crude oil prices topped US$110 this week, as Russia’s invasion of Ukraine added upward pressure to already stretched oil prices.

Currently the group, comprised of OPEC, Russia and allied producers, had been increasing output by 400,000 barrels per day each month since August, after caps were put on production during the COVID-19 pandemic.

"Current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals but by current geopolitical developments," OPEC+ said in a statement.

Sources told Reuters that the group, which also includes US ally Saudi Arabia, did not mention the ongoing issue in Ukraine.

On Monday, the International Energy Organisation, led by the US, agreed to release 60mln barrels in oil reserves, equivalent to about 12 days’ worth of Russian exports, barely putting a dent in the price of oil.

The decision will be met with dismay by the West, with OPEC+ still due to make 2.6 million bpd of cuts by the end of September.

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