Major oil-producing nations agree to accelerate their output over next two months to cool sharp rise in fuel prices
Major oil-producing nations have agreed to accelerate their output over the next two months to cool a sharp rise in fuel prices.
Members of the Opec cartel said they would step up their supply, amid a squeeze caused by Russia’s brutal attack on Ukraine.
The group, which includes Saudi Arabia and Iran, agreed to increase production by 648,000 barrels per day in July and August following a meeting of its ministers.
Overdrive: Members of the Opec cartel said they would step up their supply, amid a squeeze caused by Russia’s brutal attack on Ukraine
This was higher than March’s increase of around 400,000 barrels. The news sent the price of Brent crude down to around $116 a barrel from around $124 earlier in the week.
Russia is a major exporter of oil, but its supplies have been steadily choked off by sanctions after Vladimir Putin invaded Ukraine.
Since the war began, this squeeze in the oil market has lit a fire under the cost of fuel, causing pain for motorists at the pump and energyguzzling businesses such as airlines. This has also fuelled a surge in inflation, piling pressure on struggling households.
But Howard Cox, founder of FairFuelUK, said oil prices may begin to climb again next month despite the increased supply.