Fuel Prices Likely to Increase Further Ahead of OPEC Meeting

Rabat – High oil and gas prices have fueled discontent in countries across the world, yet prices are likely to rise even further this week as hopes for an OPEC supply boost appear small.

While prices at the pump in Morocco have been painfully high, this weekend might be a strategic moment to fill up the gas tank.

Oil prices are expected to rise further in the coming week as an upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and Russia (OPEC+) is unlikely to result in a supply boost that could lower global oil prices.

With the OPEC+ club set to meet on August 3, many around the world are hoping for a significant supply boost that could help bring down global energy prices. Hopes for such a result are slim, however, and fears of a non-conclusive OPEC meeting are already driving oil prices up.

Oil prices rose on Friday as experts have little hope that OPEC+ members, who are benefiting tremendously from record oil prices, are unlikely to respond to a US request to boost production quotas to improve the supply of oil in global markets.

The upcoming OPEC+ meeting could result in a commitment to increase production quotas, yet many observers expect the group of oil-producing nations to either maintain or slightly increase current quotas. Still, there is also the possibility that OPEC+ might respond preemptively to fears of an upcoming recession (which reduces demand for oil) by cutting its oil production.

Any OPEC move is likely to lead to a further increase in fuel prices worldwide, except for the unlikely outcome of a significant commitment to boost production.

With many countries unable to provide further fuel subsidies to citizens, these potential oil price hikes could again drive prices up at the pump for people already impacted by the current economic crisis that has driven up food and energy prices.