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OPEC fails to increase oil output amid capacity troubles

BNN: 'The OPEC cartel -- which has struggled for many months to revive oil supplies halted during the pandemic -- effectively failed to increase output at all in April as members remained plagued by capacity constraints. While Iraq made a substantial boost, countries such as Libya and Nigeria saw their production fall amid operational disruptions and diminished investment, according to a Bloomberg survey.


'Even group leader Saudi Arabia didn’t hike by as much as permitted by its agreed quota. International crude prices are holding near US$106 a barrel as OPEC’s struggle is exacerbated by a de facto embargo on Russian supplies by many refiners following the invasion of Ukraine. The lofty price levels are feeding into an inflationary spike that’s battering consumers and threatening growth, alarming policy makers around the world.'

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