The Organization of Petroleum Exporting Countries, also known as OPEC, and its associated allies are set to meet in August to decide whether to increase productions on Petroleum. Some members, like Saudi Arabia and the United Arab Emirates, are about to increase output of their oil supply, with Libya’s National Oil Corporation expecting to start resuming oil production very soon. All around the EU and the Middle East, oil prices are rising up, even as other companies are slowing down production.
However, the EU is blocking Russian oil imports. This ban caused Russia to lose out on its supply, with political unrest in countries like Venezuela, Egypt, and most especially Ukraine forcing the supply chain to fall down even further. Not even the United States’ exports are helping matters. While still the largest oil producer in the world, more is being sold than can be produced. OPEC will keep to their already existing production deal, but it is apparent it won’t cause prices to rise very soon.
Oil Concerns in the US
There have been massive talks about oil in the US. One such case being the controversies surrounding the 2021 heat dome formed in the Pacific Northwest. A class action lawsuit is underway to sue gas and oil companies including Exxon, Shell and others. The plaintiffs assert that emissions from fossil fuels used by these companies worsened a deadly heatwave in Oregon’s Multnomah County. This event that caused massive property damage, along with the deaths of almost seventy people. Exxon representatives are currently referring to this lawsuit as “unproductive”.
If the lawsuit sees success, however, these companies could respond by raising their prices and worsening the present situation. Due to this massive overproduction of oil, more Americans are becoming hesitant to trust these companies. The rise in prices could lead to more damage down the line, and must be monitored carefully in the future.