OPEC likely to stick to modest oil boost despite war jitters

LONDON (AP) — OPEC and allied oil producers including Russia are deciding how much crude to pump to the world Thursday, with expectations for only a modest increase despite pleas for more. High oil prices are fueling inflation in the U.S. and other countries and cushioning the blow of Western sanctions over Russia's invasion of Ukraine.

Analysts expect the group, known as OPEC+, to stay on its schedule of gradual increases to restore production cuts made during the depths of the coronavirus pandemic in 2020.

So far, that steady pace has meant adding 400,000 barrels per day at the start of each month. Beginning in May, the level is to be adjusted slightly upward to 432,000 barrels because of revised baseline production levels, according to the August edition of OPEC's official monthly bulletin.

The modest monthly increases have not helped ease spikes in the price of oil tied to rebounding global demand for fuel for cars, trucks and airplanes. The war in Ukraine and sanctions against Russia, the world's largest oil exporter with some 12% of global supply, have also fed higher prices over fears its flows might be disrupted.

Oil prices have a major influence on how much U.S. drivers pay at the pump for gasoline. To combat high gas prices — averaging $4.24, up $1.38 from a year ago — U.S. President Joe Biden is preparing to order the release of up to 1 million barrels per day from strategic petroleum reserves, with an announcement expected as soon Thursday.

In November, the White House announced the release of 50 million barrels in coordination with other countries, and after the war began, the U.S. and 30 other countries agreed on an additional release of 60 million barrels.

Oil prices slumped on expectations of a new release, but analysts at UniCredit bank said the impact of such moves on prices “is...