Oil prices edge higher as OPEC+ announces small production increase

• Oil ticked up Wednesday as OPEC+ said it would raise output by 100,000 barrels per day from September.
• The increase isn't likely to meet demand constraints in the US, even after President Biden's trip to the Middle East.

Oil prices rose Wednesday as OPEC+ said it would increase daily output by 100,000 barrels per day in September.

West Texas Intermediate crude increased as much as 1%, trading at $94.69 per barrel. Brent Crude, the international benchmark, also increased to $100.45 a barrel.

The uptick in output is small, and likely a letdown to President Joe Biden after his visit to the Middle East last month sought to entice Saudi Arabia to fill demand gaps domestically. The US approved over $5 billion worth of weapons sales to both the UAE and Saudi Arabia, a seemingly good faith move to entice further oil output.

But an additional 100,000 barrels per day is unlikely to do much to ease price pressures in the US, and is equal to 86 seconds of additional flows globally, according to Reuters.

Energy prices have soared this year as Russia's invasion of Ukraine upended the market. Rebounding demand has also added to skyrocketing prices, with China expected to further complicate the situation once the country rebounds from a string of Covid-19 lockdowns that dampened demand.

OPEC member countries say they're already operating at full-capacity and have concerns over their ability to meet demand. Saudi Arabia, the de facto leader of the group, is essentially maxing out its output capabilities and any additional production isn't sustainable.