The group of oil producers known as OPEC+ on Wednesday decided to boost production in September by a much slower pace than in previous months, the AP news agency reports.
The group, which includes OPEC countries and other top oil producers like Russia, said it will increase output by 100,000 barrels a day next month after raising it by 648,000 barrels per day in July and August.
In approving the decision, the group considered what effects staggering inflation and rising COVID-19 rates may have on global demand for fuel in the fall.
The group has restored all the production cuts it made in 2020 during the depths of the pandemic, when oil prices and demand plummeted. It has been gradually adding more oil and gas to the market as economies recovered.
They had, however, struggled to meet full production increase targets as most members have exhausted their oil output potential following years of under-investment in new capacity. Combined with geopolitical disruptions, the lack of spare supply has driven up energy prices and spurred inflation.
The oil prices rose sharply in February. It fell somewhat since OPEC+ last met but rose modestly on Wednesday. A barrel of US benchmark crude WTI was selling for just over $94, compared with more than $105 per barrel a month ago. Brent crude, the international standard, was selling for just over $100 a barrel, also down about $110 from a month ago.
On Wednesday, OPEC also expressed concerns that global supply will not be able to meet demand after 2023.