Saudi Press

Saudi Arabia and the world
Friday, May 09, 2025

OPEC+ answers Biden’s diplomacy with tiny oil-output hike

OPEC+ answers Biden’s diplomacy with tiny oil-output hike

OPEC+’s small increase in output offers little comfort for consumers hit hard by soaring oil prices.

OPEC+ responded to months of diplomatic efforts from US President Joe Biden with one of the smallest oil production increases in its history.

The cartel will add only 100,000 barrels a day of oil in September, giving a tight market extra supplies at a much slower pace than in recent months despite pressure from the White House to help cool prices.

The 23-nation alliance will divide that amount proportionally between members, and with only the Saudis and the United Arab Emirates able to bolster production, just a fraction of it is likely to be delivered. For July and August, the group had pledged to add more than 600,000 barrels a day to the market.

The increase offers little respite for consumers suffering the inflationary squeeze of high oil prices. Brent crude erased earlier losses and was little changed at $100.59 a barrel as of 3:10 p.m. in London.

“From a global balance perspective, today’s minuscule quota increase — the smallest since 1986 in absolute terms and smallest ever in percentage terms — is noise,” said Bob McNally, president of Washington-based consultant Rapidan Energy Group and a former White House official. “Though, if pump prices keep falling, the White House will likely claim credit.”

Ministers endorsed the proposal at an online meeting on Wednesday, according to a statement on the OPEC website. There were no discussions about whether the Organization of Petroleum Exporting Countries and its allies would keep increasing production in subsequent months, delegates said. The group meets again on Sept. 5.

After Biden’s trip to Saudi Arabia, US officials had said they were optimistic that Riyadh and Washington were on a path toward reconciliation. During his visit, when he greeted Crown Prince Mohammad bin Salman with a fist bump, the president said he expected further steps from the kingdom in terms of oil production. Late on Tuesday, the US approved the sale of $3.05 billion of weapons including Patriot missiles to the Middle East heavyweight.


OPEC+ had shown some goodwill toward consumers in recent months, fast-tracking the production increases in July and August that completed the reversal of their Covid-era curbs. The Saudis ramped up output to 10.78 million barrels a day last month, according to a Bloomberg survey, a level pumped only on rare occasions.

“We saw that OPEC increased their supply in July and August, quite significantly, and now they’re continuing that,” Amos Hochstein, the State Department’s senior adviser for global energy security, said in an interview in Washington. “At the end of the day, we’re not looking at numbers of barrels, we’re looking at: Are oil prices coming down from their highs?”

There’s been a “remarkable” drop in crude prices in recent months, but the Biden administration wants to see them go even lower, Hochstein said.


Capacity Fears


OPEC+ delegates said before the meeting that they saw no immediate need to replace supplies from coalition member Russia, which have proven robust despite sanctions over its invasion of Ukraine. Opening the taps freely could also have strained relations with Moscow.

“There are uncertainties on the market that need to be taken into account” such as new Covid strains and restrictions on Russian petroleum sales, Deputy Prime Minister Alexander Novak said in an interview with state Rossiya 24 TV. “Therefore, such cautious decisions are taken today.”

Delegates had also said prior to the meeting that the group’s limited reserves of spare production capacity were best kept for later in the year, when crude markets look set to tighten as the US winds down its release of emergency stockpiles. Idle supplies in the Middle East are down to “razor-thin” levels of about 2 million barrels a day, or 2% of world demand, according to the International Energy Agency.

OPEC+ ministers noted in their final communique after Wednesday’s meeting that “the severely limited availability of excess capacity necessitates utilizing it with great caution.”

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Warren Buffett to Step Down as Berkshire CEO After Nearly 60 Years
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
IMF Predicts No Global Recession Amid Trade Tensions
Worldwide Markets Decline as U.S.-China Trade Frictions Intensify
OpenAI Lands Unprecedented $40 Billion Investment
Removing the Political Adversary is Dismantling What's Remaining of Turkey's Economy.
Ex-FIFA President and French Football Icon Acquitted of Corruption Allegations
White House Investigates Security Breach After Journalist Accidentally Added to Secret Yemen Strike Chat
Volunteers in Jeddah Ensure No One Goes Hungry During Ramadan Iftar
New Restaurant Opens in Makkah's Iconic Clock Tower for Ramadan Iftar
Saudi Arabia's Project Masam Removes 552 Houthi Mines in Yemen
Saudi Arabia Fines Over 400 Foreign Trucks for Regulatory Violations
Saudi National Campaign for Charitable Work Reports Significant Donations in Ramadan
Historic Al-Hosn Al-Asfal Mosque Restored in Asir as Part of National Heritage Initiative
KSrelief Expands Humanitarian Efforts in Syria, Sudan, and Lebanon
Saudi Arabia Advocates for Global Water Cooperation at Forum
Madinah Governor Tours Islamic Arts Biennale in Jeddah
Saudi Foreign Minister in Cairo to Lead Meeting on Gaza Developments
Recognition of Saudi and Pakistani Entrepreneurs at Riyadh Ceremony
UAE Announces $1.4 Trillion Investment Plan in the United States
Saudi Arabia Innovates in Soil Quality and Water Conservation
Governor of Taif Engages with Rose and Aromatic Plants Cooperative
Saudi Food and Drug Authority Enhances Preparations for Hajj Season
Saudi Arabia Distributes Aid to Yemen and Romania
Restoration of Historic Al-Qalaah Mosque in Riyadh Underlines Heritage Preservation Efforts
Saudi Arabia Arrests Over 25,000 for Immigration Violations in One Week
UAE’s ADQ and Energy Capital Partners Announce $25 Billion Energy Venture in the U.S.
KSrelief Launches Extensive Ramadan Food Aid Initiative
Ramadan Celebrations Revitalize Historic Jeddah
Makkah Authorities Urge Worshippers to Follow Crowd Management Guidelines
Direct Flights Between Dammam and Damascus Reestablished for Syrian Residents
Saudi Main Index Rises to Close at 11,760 Amid Mixed Market Performance
Moroccan Prime Minister Aziz Akhannouch Visits Prophet's Mosque in Madinah
Cultural Development Fund Hosts Third Annual Storytellers Event in Riyadh
Investment Surge in Fintech, Gaming, and Health Care Across MENA Region
Surging Prices for Religious Tourism in Saudi Arabia Amid Ramadan Rush
Middle Eastern Airlines’ Fleet Projected to Surge Above Global Growth Rates
×