Oil prices edge higher as OPEC+ announces small production increase

Oil prices edge higher as OPEC+ announces small production increase

Oil ticked up Wednesday as OPEC+ said it would raise output by 100,000 barrels per day from September.

The increase isn't likely to meet demand constraints in the US, even after President Biden's trip to the Middle East.

OPEC has faced output limitations as member countries can't keep pace with demand.

Oil prices rose Wednesday as OPEC+ said it would increase daily output by 100,000 barrels per day in September.

West Texas Intermediate crude increased as much as 1%, trading at $94.69 per barrel. Brent Crude, the international benchmark, also increased to $100.45 a barrel.

The uptick in output is small, and likely a letdown to President Joe Biden after his visit to the Middle East last month sought to entice Saudi Arabia to fill demand gaps domestically. The US approved over $5 billion worth of weapons sales to both the UAE and Saudi Arabia, a seemingly good faith move to entice further oil output.

But an additional 100,000 barrels per day is unlikely to do much to ease price pressures in the US, and is equal to 86 seconds of additional flows globally, according to Reuters.

Energy prices have soared this year as Russia's invasion of Ukraine upended the market. Rebounding demand has also added to