Global crude markets are about to get a paltry boost in additional oil output, after OPEC and its allies agreed to raise production by a nominal 400,000 barrels per day beginning in March.
During OPEC’s latest meeting, which lasted a mere 16 minutes, oil ministers decided to adhere to their previous plan of increasing oil output by only 400,000 barrels per day next month, despite oil prices sitting at nearly $90 per barrel and consumer inflation around the world soaring to historic levels.
The output plan was originally set in July, during a time when oil markets still displayed slack amid recovering demand. However, OPEC has failed to promptly respond to changing market conditions, and instead has persistently fallen short of targets over the past several months. As such, the upcoming output increase will likely do little to tame rising crude prices, particularly as the conflict between Russia and Ukraine threatens to rattle global energy flows.
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