OPEC+ refuses to increase oil production. Brent price approaches $90 a barrel

OPEC+ countries have decided to continue reducing oil supplies in the first half of the year, maintaining production cuts of approximately 2 million bpd until the end of June, Bloomberg reports.

The price of Brent crude oil rose to $89.7 a barrel after the OPEC+ decision.

The high price of oil provides additional profits for OPEC+ countries, but in the medium term, it threatens to cause a shortage of oil on the world market. The shortage could lead to oil prices reaching $100 a barrel, according to JPMorgan Chase.

Not all OPEC+ countries are adhering to the production cut schedule: Iraq and Kazakhstan have not yet made the agreed cuts.

Russia, although belatedly, implemented the promised reduction in crude oil production a year ago, is increasing exports to use the revenues to finance the war against Ukraine.

OPEC+, which includes 22 countries, will meet in Vienna on June 1 to decide whether to continue the supply cuts in the second half of the year.