The group has gradually returned the approximately 10 million barrels per day it promised to withdraw from the market in April 2020. In recent months, monthly production has increased by 400,000 to 432,000 barrels per day.
Oil prices recovered early losses in mid-morning trade and proceeded to rise throughout the afternoon. The U.S. oil benchmark, West Texas Intermediate crude futures, finished the day at $116.87 a barrel, up 1.4 percent. Brent crude, the international standard, rose 1.14 percent to $117.61 per barrel.
The announcement comes as the world grapples with rising energy prices. Governments, including the Biden administration, have urged producers to increase output in order to temper oil’s wild ride.
The announcement by OPEC+ was welcomed by the government, according to White House press secretary Karine Jean-Pierre.
“We recognize the role of Saudi Arabia as the chair of OPEC+ and its largest producer in achieving this consensus amongst the group members,” she said in a statement, before adding that the “United States will continue to use all tools at [its] disposal to address energy prices pressures.”
While output should increase in the future, OPEC+ has struggled to achieve production quotas. Furthermore, the additional barrels scheduled to enter the market will not compensate for a probable loss of more than 1 million barrels per day from Russia as nations across the world tighten sanctions in response to the invasion of Ukraine.