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BUSINESS Friday 3 June 2022
OPEC+ alliance boosts oil production as energy prices soar

LONDON (AP) — The OPEC reopening from COVID-19
oil cartel and allied pro- lockdowns in "major global
ducing countries including economic centers" and
Russia will raise production the end of seasonal main-
by 648,000 barrels per day tenance work at refineries
in July and August, offering as justifications for the in-
modest relief for a global cremental increase. Lock-
economy suffering from downs in Shanghai and
soaring energy prices. Beijing have sapped fuel
The cost of oil, which be- demand in China.
gan to rise sharply to start OPEC+ decisions have
of the year, spiked after been complicated by the
Russia's Feb. 24 invasion of group's failure to meet its
Ukraine. U.S. crude prices production targets due
are now up 54% since the to underinvestment and
beginning of the year, and other roadblocks in some
international crude prices member countries. Actual
are up almost 40% in that production has lagged the
time. scheduled increases.
Gasoline prices have risen The U.S. saw a record high
in tandem and hit anoth- average gasoline pump
er all-time high in the U.S. price on Thursday of $4.71
Thursday. per gallon, according to
That's become a potential AAA. The price of crude
problem for U.S. President The logo of the Organization of the Petroleum Exporting Countries (OPEC) is seen outside of OPEC's makes up about half the
Joe Biden in mid-term Con- headquarters in Vienna, Austria, on March 3, 2022. price of gasoline at the
gressional elections this fall. Associated Press pump in the U.S., and pric-
Elevated prices are also a es could go even higher as
threat to the global econ- have also been rising due gional security issues. nounced Thursday. the summer driving season
omy as it emerges from the to a lack of refining capac- The decision Thursday steps U.S. crude, which had fall- gets under way. High gas
pandemic, with both com- ity to turn crude into motor up the pace by the alli- en by as much as $3 per prices for drivers are a po-
panies and families poten- fuel. ance, known as OPEC+, in barrel early in the day, re- tential factor in U.S. politics
tially reducing activity to The US "welcomes" the in- restoring cuts made during versing course and traded with mid-term Congressio-
deflect those costs. creased production, White the worst of the pandemic up almost 2% at $117.15. nal elections approaching
OPEC, whose de facto House press secretary Kar- recession. The group had International benchmark later this year.
leader is Saudi Arabia, had ine Jean-Pierre said in a been adding a steady Brent rose 0.7% at $117.02. In Germany, the govern-
for months resisted pres- prepared statement. "The 432,000 barrels per day Market traders may have ment has sought to soften
sure from the White House United States will continue each month to gradually expected more from the the blow to consumer fi-
to increase oil supply more to use all tools at our dispos- restore production cuts meeting, such as an indi- nances from energy infla-
quickly. That stance, along al to address energy prices from 2020. cation from Saudis that tion by launching deeply
with a European Union pressures." The increase did not ap- they could make up for any discounted transit passes
agreement to end most Biden administration offi- pear to ease concerns shortfall due to sanctions that enable unlimited use
oil imports from Russia, cials have recently visited about tight supply and against Russia. of local trains, subways and
has pushed prices higher. Saudi Arabia for talks on oil prices actually rose af- Instead the alliance's state- buses for 9 euros ($10) per
Gasoline and diesel prices energy supplies and re- ter the decision was an- ment merely mentioned month.q

Amazon to close Kindle bookstore in China, halt device sale

Associated Press Amazon's announcement said.
Amazon said Thursday that comes as foreign technol- "We have established a
it will shut down its digital ogy companies have been broad business base in Chi-
Kindle bookstores in China pulling out or downsizing na and will continue to in-
and stop selling the device their operations in China novate and invest."
to retailers in the country as a strict data privacy "As a global business, Ama-
to readjust the focus of its law specifying how com- zon is focused on delivering
business. panies collect and store valuable products and ser-
The company said in a data takes effect. Such vices to customers through
post on the popular mes- pullbacks have come from innovation. At the same
saging app WeChat that companies including Airb- time, we continue to adjust
the digital bookstore will nb, Yahoo and Microsoft's the strategic focus of our
stop operating on June 30, LinkedIn, which shuttered own business and continue
2023. Customers in China the Chinese version of its to make efforts in the areas
will not be able to buy new site last year and replaced that customers need," the
e-books after that day and it with a jobs board with no company said in another Customers stand near a display of Kindle electronic readers at
won't be able to download social networking functions. statement posted on its of- the opening day for Amazon Books, the first brick-and-mortar
books they've already pur- However, Amazon said its ficial Weibo account. retail store for online retail giant Amazon, Nov. 3, 2015, in Seattle.
chased after a year later, other businesses in China The e-commerce giant Associated Press
the company said. It noted will continue. went on to emphasize its
that it will offer refunds for "Amazon China's long-term cross-border e-commerce gies and services. Amazon offices in 12 cities including
Chinese customers who commitment to customers efforts in China, as well as its also said that it had 10,000 Beijing, Shanghai, Hang-
bought a Kindle this year. will not change," the post cloud computing technolo- employees in China, with zhou and Shenzhen.q