Political | Process

The influential energy alliance of OPEC and non-OPEC partners swiftly agreed to raise its output targets by 432,000 barrels per day from May 1.

Energy analysts had widely expected OPEC+ to rubber-stamp another modest monthly increase despite sustained pressure from top consumers calling for the group to pump more to cool soaring oil prices and aid the economic recovery.

Oil prices have rallied to a near all-time high on concerns about Russian supply disruptions after the U.S. and international allies imposed a barrage of economic measures against the Kremlin as a result of its unprovoked onslaught in Ukraine.

It is against this backdrop that the U.S. is considering a plan to cool soaring crude prices by releasing up to 180 million barrels from the country’s strategic petroleum reserve, Reuters reported Wednesday, citing four unnamed sources. President Joe Biden is expected to deliver remarks later on Thursday.

The move would mark the third time the U.S. has tapped its SPR in six months and the second since Russia’s invasion of Ukraine on Feb. 24.

Oil prices dropped sharply on the news.

International benchmark Brent crude futures traded 5% lower at $107.69 a barrel Thursday afternoon in London, while U.S. West Texas Intermediate futures fell 5.4% to $101.96.

OPEC Secretary-General Mohammad Barkindo on Wednesday encouraged members of the group, which includes Russia, to “stay the course” and “remain vigilant and attentive to ever-changing market conditions.”