OPEC+ in Talks to Increase Oil Output from August

Rania El Gamal and Alex Lawler
Tuesday, June 22, 2021
Credit: Maksym Yemelyanov/AdobeStock

OPEC+ is discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market, two OPEC+ sources said on Tuesday.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets next on July 1.

"It is highly possible to increase gradually from August," said one of the sources, adding that no final decision had been made and the exact volumes are yet to be agreed on.

The talks mean that OPEC and Russia are likely to find common ground again on oil production policy. Moscow has been insisting on raising output further to avoid prices spiking, while key OPEC producers, such as Saudi Arabia, have given no signals on the next step until now.

Russian producers see August as a good time to further ease oil output cuts despite the expected return of Iranian barrels as the market is in deficit, an industry source told Reuters on Tuesday.

"Limping" U.S. production also supports the case for easing the curbs, the Russian source said.

Crude oil prices retreated on Tuesday, after Brent rose above $75 a barrel for the first time since April 2019 and as OPEC+ begins discussions on raising oil production, but a strong demand outlook underpinned prices.

 (Reporting by Rania El Gamal, Alex Lawler, and Vladimir Soldatkin, editing by Louise Heavens and Jason Neely)

Categories: Activity Production

Related Stories

SLB Names Raman CSO, CMO

SLB Names Raman CSO, CMO

Canadian Oil and Gas Firm Intensifies Ops at Gas Field Off Türkiye

Canadian Oil and Gas Firm Intensifies Ops at Gas Field Off Türkiye

Brava Energia Signs Supply Deal with Trafigura for Atlanta Oil

Brava Energia Signs Supply Deal with Trafigura for Atlanta Oil

Current News

Asso.subsea Introduces Marine Technology Business Unit

Petronas Inks Two More PSCs for Bid Round 2024, Launches Round 2025

Vår Energi Picks Operator for Offshore Helicopter Services in Norway

Spain to Open First Offshore Wind Tender Later in 2025

Subscribe for OE Digital E‑News

Offshore Engineer Magazine