Major oil-producing nations have reached an agreement on an increase in output, ending a dispute that sent prices to a six-year high earlier this month.
Under the deal reached on July 18, the alliance of oil-producing nations known as OPEC+ will increase output each month by 400,000 barrels a day beginning in August.
Saudi Arabia and the United Arab Emirates resolved their disagreement over individual output levels, opening the door to the deal.
OPEC+, which includes Russia, cut production by 10 million barrels a day last year as the coronavirus pandemic decimated travel, curtailing demand for jet fuel and gasoline.
The alliance has already added 4.2 million barrels a day back to the market as economies around the world reopen.
However, that hasn’t stopped prices from surging, raising fears of inflation and prompting calls for an increase in the output.
U.S. prices nearly reached $77 a barrel this year, the highest since late 2014.
Under the agreement, Russia will increase its output from 11 million barrels per day now to 11.5 million by May 2022.
Oil exports account for the lion’s share of Russia’s export revenue.
However, lower oil prices resulting from an easing of the global supply constraint could offset the potential benefits to Russia from its increase in output.
