OPEC+ was set to agree on last night on another modest increase in oil output targets, three sources familiar with the talks said, as the producers’ group executes plans to regain market share due to rising supply glut fears.
OPEC+ has raised output targets by more than 2.7 million barrels per day — about 2.5 percent of global supply — since April, but slowed the pace in October and November from larger increases amid predictions of a looming oversupply.
New Western sanctions on OPEC+ member Russia are adding to challenges in the discussions as Moscow might struggle to further raise output after the US and the UK imposed new measures on top producers PJSC Rosneft Oil Co and PJSC Lukoil Oil Co.
Photo: Reuters
Eight OPEC+ members — Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Oman, Kazakhstan and Algeria — were set to agree after press time last night to increase December output targets by 137,000 barrels per day, the three sources said.
They declined to be named because they are not allowed to speak to the media. A fourth source said a pause in output hikes was also possible.
Oil prices fell to a five-month low of about US$60 a barrel on Oct. 20 due to concerns that a glut was building, but have since recovered to about US$65 a barrel on Russian sanctions and optimism over US talks with trade partners.
Analysts have said this week they expect OPEC+ to raise targets by 137,000 barrels per day for next month.
Yesterday’s meeting was scheduled for 4pm GMT, the three sources said.
OPEC+ had been reducing output for several years until April and cuts had peaked in March, amounting to 5.85 million barrels per day in total. The cuts were made up of three elements: voluntary cuts of 2.2 million barrels per day, 1.65 million barrels per day by eight members and a further 2 million barrels per day by the whole group.
The group has been unwinding voluntary cuts while the last element of the cuts for the whole group is meant to stay in place until the end of next year.
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