The OPEC oil cartel and its allies decided Wednesday to boost production in September by a much slower pace than in previous months.
OPEC, led by Saudi Arabia, and its allies, led by Russia, said they will increase output to 100,000 barrels a day next month after raising it by 648,000 barrels per day in July and August. The group considered what effects staggering inflation and rising COVID-19 rates may have on global demand for fuel in the fall.
It comes after U.S. President Joe Biden visited Saudi Arabia last month, aiming to improve relations and encourage more oil production from the cartel to draw down high prices at the pump. The average price of gasoline in the U.S. has fallen for 50 days in a row, according to price comparison website GasBuddy.
While an increase in oil production will push down prices even more, the amount of new crude being released is less than U.S. President Joe Biden was hoping for after his recent visit to Saudi Arabia.
The Saudis declined to offer a commitment to pump more at that meeting, which is why the administration has been trying to source more barrels elsewhere ever since.
