Saudi Press

Saudi Arabia and the world
Friday, Nov 21, 2025

OPEC+ oil boost likely not much help to high gasoline prices

OPEC+ oil boost likely not much help to high gasoline prices

The OPEC oil cartel and allied producing nations decided Thursday to boost production of crude by an amount that will likely do little to relieve high gasoline prices at the pump and energy-fueled inflation plaguing the global economy.
The increase of 648,000 barrels per day in August still leaves the world thirsty for oil as it rebounds from the COVID-19 pandemic and runs up against the inability of the 23-member OPEC+ alliance to meet its production quotas.

OPEC+, which includes Russia, confirmed the decision from its last meeting. Before that, it had been adding about 432,000 barrels per day monthly to put oil back on the market after cutting production dramatically during the height of the pandemic.

The increase was seen as a gesture largely by OPEC leader Saudi Araba to U.S. President Joe Biden, who soon afterward planned his first trip to the kingdom as president where oil production is likely to be a topic next month. Biden, facing political pressure at home, has been urging oil-producing countries to open the taps and help bring down gasoline prices for American drivers.

Gasoline prices worldwide have reached painful highs. In the U.S., they surpassed $5 a gallon for the first time this month before dipping in recent days as global oil prices fell on fears of a recession.

Biden has been under pressure to do whatever he can to reduce prices, including urging Congress to suspend gas and diesel taxes and releasing oil from strategic reserves, although many experts say there’s little he can do.

OPEC, on the other hand, could help lower prices by increasing production — in theory. But many oil-producing countries are struggling to produce as much as the group’s decisions set out.

Nigeria and Angola have longstanding shortfalls, while Russia has been losing some of its production because Western customers are shunning its oil, either from fear of sanctions or because they don’t want to be associated with the war in Ukraine.

According to data collected by the International Energy Agency, OPEC+ production fell 2.8 million barrels per day below the agreed level in May. The production agreement gives laggards until the end of the year to make up their quotas.

“Only very few of them are likely to be able to achieve this though, either because of limited capacities (especially Angola and Nigeria) or because of sanctions (Russia),” wrote commodities analyst Carsten Fritsch at Commerzbank in a research note. “The question therefore is whether countries with spare capacities such as Saudi Arabia or the United Arab Emirates will be allowed to step into the breach.”

Yet doubts have spread in the market about exactly how much spare capacity even the Saudis or the UAE have. And for those two to increase their market share at the expense of other cartel members might be a tough sell.

As of May, surplus production capacity in non-OPEC countries decreased by 80% compared with 2021, according to the U.S. Energy Information Administration. Surplus capacity is oil production that can be brought online within 30 days and sustained for at least 90 days. In 2021, about 60% of the surplus production capacity was in Russia, but much of that was eliminated as of May 2022 due to sanctions, the agency said.

Russia’s war in Ukraine is contributing to high oil prices fueling inflation around the world. At a summit of the Group of Seven leading economies this week, the U.S. pushed for a price cap on Russian oil imports to try to blunt the price spikes and reduce money from oil sales flowing into the Kremlin’s war chest.

The European Union, a key importer of Russian energy, also has approved a ban on 90% of Russian oil imports by year’s end.

After the OPEC+ meeting, U.S. benchmark oil traded down 0.7% on the day, to $109.09 per barrel. That is more than 40% higher than at the start of the year. International benchmark Brent crude drifted 0.4% lower, to $115.83 per barrel.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
Saudi Arabia Accelerates Global Mining Strategy to Build a New Economic Pillar
Crown Prince Mohammed bin Salman Arrives in Washington to Reset U.S.–Saudi Strategic Alliance
Saudi-Israeli Normalisation Deal Looms, But Riyadh Insists on Proceeding After Israeli Elections
Saudis Prioritise US Defence Pact and AI Deals, While Israel Normalisation Takes Back Seat
Saudi Crown Prince’s Washington Visit Aims to Advance Defence, AI and Nuclear Cooperation
Saudi Delegation Strengthens EU–MENA Security Cooperation in Lisbon
Saudi Arabia’s Fossil-Fuel Dominance Powers Global Climate Blockade
Trump Organization Engages Saudi Government-Owned Real-Estate Deal Amid White House Visit
Trump Organization Nears Billion-Dollar Saudi Real Estate Deal Amid White House Diplomacy
Israel Presses U.S. to Tie Saudi F-35 Sale to Formal Normalisation
What We Know Now: Donald Trump’s Financial Ties to Saudi Arabia
Saudi Arabia’s Ambitious Defence Wish List for Washington: From AI Drones to Nuclear Umbrella
Analysis Shows China, Saudi Arabia and UAE among Major Recipients of Climate Finance Loans
Why a Full Saudi–Israel Normalisation Deal Eludes Trump’s Reach
Trump Presses Saudi Arabia to Normalise Ties with Israel as MBS Prepares for White House Visit
US-Saudi Summit Set for November 18 Seeks Defence Pact and Israel Normalisation Momentum
Comcast CEO Brian Roberts Visits Saudi Arabia Amid Potential Bid for Warner Bros. Discovery
Cristiano Ronaldo Embraces Saudi Arabia’s 2034 World Cup Vision with Key Role
Saudi Arabia’s Execution Campaign Escalates as Crown Prince Readies U.S. Visit
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
×