OPEC+ may discuss an increase in oil output for July larger than the 411,000 barrels per day (bpd) increases made for May and June, sources familiar with OPEC+ talks told Reuters.
Eight OPEC+ countries have been raising output more rapidly than initially planned, even though the extra supply has pressured prices. The strategy of group leaders Saudi Arabia and Russia is partly to punish over-producing allies and to regain market share.
On Saturday, the eight members may decide to increase output by 411,000 bpd for July, sources said. Two more sources and two OPEC+ delegates indicated a larger increase could be discussed.
Kazakhstan’s recent statement that it will not cut production has sparked debate within OPEC+, with some sources saying this may push the group toward a larger output hike.
United Arab Emirates Energy Minister Suhail Mohamed Al Mazrouei said OPEC+ is trying to balance the oil market while being mindful of rising demand.
Kazakhstan has been pumping hundreds of thousands of barrels over its OPEC+ target for months, angering other members and influencing the group’s decision to hike output in April. OPEC+ has requested Kazakhstan to compensate by cutting further, but Kazakhstan has informed the group it does not intend to reduce production.
Oil prices fell to a four-year low below $60 per barrel in April after OPEC+ accelerated output hikes and amid concerns over global economic weakness due to tariffs. Since then, prices have recovered to around $65.
OPEC+, which includes OPEC members and allies such as Russia, has made deep output cuts since 2022 to support the market. Eight members have been increasing production since April to reverse some of those cuts.
