OPEC+ is best placed to take decisions on production hikes whatever be the pressure

OPEC+ is best placed to take decisions on production hikes whatever be the pressure

US President Joe Biden’s trip to Saudi Arabia, his meetings with GCC leaders, and efforts to increase oil production are why everyone is anticipating the next meeting of OPEC+, scheduled for early August, to be quite a lively one. Other factors include the members’ growing competition for Asian markets, particularly between Russia and Iran, and the worsening energy crisis the EU is suffering from. Overcoming these challenges will be a critical step towards ensuring continuance of the OPEC+ agreement on monthly increases in oil output, which has so far kept prices at over $100 per barrel. However, some vested interests seek to divide OPEC+ policy coherence by either pressuring some members to boost production beyond the agreed pace, or by removing export barriers for some nations, particularly to Asia, while keeping them for others to create tensions within the grouping. Since the period of pressure is now over and OPEC + countries, particularly the GCC, seek to protect their interests by diversifying international economic relations, including with regard to the oil industry, there are indications the next meeting will take collective decisions aimed at protecting the gains for member by adhering to the production ceiling. The group looks likely to