London Daily

Focus on the big picture.
Thursday, Jul 09, 2026

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

0:00
0:00
Close
Tech Pulse: The Future of AI and Screen Culture
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
Jet2 Reports Strong Summer Travel Demand as Bookings Rise Seven Percent
Prince Harry Loses High Court Privacy Case Against Daily Mail Publisher
British Universities Warn Against Potential European Union Tuition Fee Changes
Heal Fertility Clinic Investigated After Embryo Biopsy Sample Mix-Up
Resolution Foundation Warns Regional Income Divide Has Barely Improved Since 1997
British Markets Remain Cautious as Middle East Tensions Rise and Government Transition Nears
Andy Burnham Poised to Become United Kingdom Prime Minister in Expected Political Transition
Nigel Farage Resigns as Member of Parliament Ahead of By-Election Amid Funding Investigation
Trump Declares Iran Ceasefire Over After Renewed Attacks on United States Bases
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
UK Parliament Pushes for Greater Domestic Control Over Critical Technologies
UK Parliament Warns Trade Fair and Exhibition Industry Is Losing Global Competitiveness
Police Launch Murder Investigation After Mother and Two Children Found Dead Near Bedford
British Chambers of Commerce Survey Shows Business Confidence Falls to Post-Pandemic Low
UK Parliament Report Warns Britain Risks Falling Behind in Artificial Intelligence Sovereignty
Office for Budget Responsibility Warns United Kingdom Faces Long-Term Fiscal Pressures
Nigel Farage Resigns as Member of Parliament Amid Financial Scrutiny and Triggers By-Election
Deep Purple Has Released Its Best Album in Decades
UK MPs Criticise Student Loan System as Potentially Mis-Sold to Millions of Borrowers
Policy Groups Propose Bank of England-Backed Solar Loan Scheme for Millions of Homes
UK Health Agency Issues Amber Heat Alerts Across Six Regions as Temperatures Rise
Royal Air Force F-35 Jets Conduct First High North Air Policing Missions From Aircraft Carrier
Major UK Companies Join Government Cybersecurity Pledge Amid Rising Digital Threats
UK Sanctions Russian Operatives Linked to Chemical Weapons Programmes and Poisoning Cases
UK Government Expands Free Breakfast Clubs and Limits School Uniform Costs
×