Sources say that OPEC+ is planning to increase oil production in November.
Three sources familiar with the discussions said that OPEC+ is likely to approve another increase in oil production of at least 137,000 bbls per day during its meeting on Sunday. The group's desire to gain market share has been boosted by the rising price of oil, they added.
OPEC+ reversed its April strategy of production cuts and has already increased quotas to more than 2,500,000 barrels per day. This represents about 2.4% world demand. The goal is to increase market share, and to do so, they have been under pressure by U.S. president Donald Trump, who wants to lower oil prices.
On October 5, eight OPEC+ member countries will meet online to discuss the output for November. OPEC+ is a group of countries that produces about half of the oil in the world, including the Organization of the Petroleum Exporting Countries and Russia.
OPEC's headquarters in Saudi Arabia and its authorities did not respond immediately to comments.
What has happened to the oil prices?
Since OPEC increased production in April, oil prices have remained in a tight range between $60 and $70 per barrel.
Prices rose above $70 a barrel on Friday. This was largely due to Ukrainian drone attacks against Russia's energy infrastructure, which caused disruptions in refining, and oil shipments.
At their peak, the group's total reductions in output amounted to 5.85 millions bpd. This was made up of voluntary cuts of 2.2million bpd plus 1.65million bpd from eight members and a further 2.0million bpd for the entire group.
A FUTURE INCREASE IS TO BE DISSCUSSED
Eight producers intend to unwind a portion of these cuts, 2.2 million bpd, by the end September. In October, the eight producers began removing a layer of 1,65 million bpd with an increase in 137,000 bpd.
OPEC+ has also given the United Arab Emirates permission to increase production by 300 000 bpd from April to September.
Three sources confirmed that the November increase, which will be discussed on 5 October, will equal at least 137,000 Bpd, the same as the October hike. The sources stated that a final decision had not yet been made.
Analysts claim that OPEC+ has not met its pledged increases because the majority of members are pumping to capacity.
The third layer of OPEC+ cuts, which will be 2 million bpd across the group, is expected to last until 2026. (Reporting and editing by Alex Lawler and Dmitry Zhdannikov; Additional reporting and editing by Maha El Dahan and David Holmes; Reporting and Editing by Olesya Almakhova and Ahmad Ghaddar)
(source: Reuters)
