FRANKFURT, Germany (AP) — Members of oil producer cartel OPEC and allied countries are weighing an increase in production now that prices have recovered to near their pre-pandemic levels. It decided to add back 500,000 barrels per day in December, and analysts say it’s possible the gathered ministers could raise production by another 500,000 barrels per day. Reticence about more production on the part of Saudi Arabia faces a different outlook from Russia, which has been a reliable advocate for more supply. One factor contributing to differences is that Russia can balance its state budget at lower oil prices than can Saudi Arabia, according to the International Monetary Fund. The price of crude oil influences gasoline prices for U.S. motorists, since the cost of crude accounts for about half the price at the pump.

Source: Egypt Independent March 04, 2021 13:07 UTC