OPEC+ set to clear another oil output increase: Sources
Oil pumpjacks and tanks are pictured in a farmer’s field near Kindersley, Saskatchewan, Canada on Sep 5, 2024. (File photo: Reuters/Todd Korol)
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
LONDON: OPEC+ is set to agree on Sunday (Jul 5) on another increase in output targets from August, sources with knowledge of the matter said, adding to global supply amid falling oil prices due to a gradual reopening of the Strait of Hormuz for oil exports.
The oil producing group has agreed in principle to increase quotas by 188,000 barrels per day from August, on top of similar increases for June and July, one OPEC+ source said ahead of the group’s meeting later on Sunday.
Two other sources said an increase of this amount was the most likely decision as a result of the online discussion.
Seven core members of OPEC+, which groups OPEC and allied producers including Russia, have increased their output quotas from April through July by almost 800,000 barrels per day.
PRODUCTION BEGINS TO RECOVER
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Yet the increase has remained largely on paper because of the US-Israel war on Iran, which closed the Strait of Hormuz for passage of tankers from some of the most important OPEC+ members including Saudi Arabia, Kuwait and Iraq.
OPEC+ output fell to 33.13 million bpd in May, according to OPEC data, from 42.77 million bpd in February. It began to recover in June thanks to US efforts to help the UAE and other OPEC+ nations to export more oil, but is still below pre-war levels.
Despite persisting supply disruptions, oil prices have returned to pre-war levels, pressured by lower Chinese imports, higher exports from non-Middle East producers, and a record global strategic stock release coordinated by the International Energy Agency.
The memorandum of understanding to end the war has also helped convince traders that supply would ultimately return to normal levels. Brent crude prices traded near US$72 per barrel on Friday, down from recent peaks of more than US$120 per barrel.
Source: Reuters/co
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
