The Strategist

G7 calls on OPEC to increase oil production amid soaring prices

05/30/2022 - 08:14

According to the Financial Times, the G7 energy ministers have asked OPEC to increase oil production, citing the communiqué from the group's meeting in Germany.

The ministers highlighted that Russia's aggression in Ukraine had caused a jump in oil, gas, and coal prices, putting considerable strain on low-income individuals and businesses.

Earlier this month, G7 leaders said they were ready to phase out Russian energy, including by banning imports of Russian oil. G7 officials also said reducing dependence on Russian energy was an urgent task for the European Union as well. The European alliance had planned to include an embargo on Russian energy sources in its sixth sanctions package, but the countries have so far failed to agree on it.

In this case, despite the common position of G7 on oil, it is unclear whether OPEC countries will heed this call, the FT notes. In particular, the pressure from Western countries is resisted by Saudi Arabia, which insists that there is no shortage of supplies, the newspaper points out.