Eight OPEC+ members mull output hike
‘The group will likely justify its decision by officially referring to low inventories and solid demand.’
‘The group will likely justify its decision by officially referring to low inventories and solid demand.’
LONDON, United Kingdom (AFP) — Saudi Arabia, Russia and six other key members of the Organization of Petroleum Exporting Countries Plus (OPEC+) alliance will discuss crude production on Saturday, with analysts expecting the latest in a series of output hikes for August.
The wider OPEC+ group — comprising 12 nations and allies — began output cuts in 2022 in a bid to prop up prices.
But in a policy shift, eight alliance members spearheaded by Saudi Arabia surprised markets by announcing they would significantly raise production from May, sending oil prices plummeting.
Oil prices have been hovering around a low $65 to $70 per barrel.
Representatives of Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman will take part in Saturday’s meeting, expected to be held by video.
Analysts expect the so-called “Voluntary Eight” (V8) nations to decide on another output increase of 411,000 barrels per day -- the same target approved for May, June and July.
The group has placed an “increased focus on regaining market shares over price stability,” said Saxo Bank analyst Ole Hansen.
The group will likely justify its decision by officially referring to “low inventories and solid demand as reasons for the faster unwind of the production cuts,” UBS analyst Giovanni Staunovo told Agence France-Presse.
By approving another output hike, heavyweight Saudi Arabia might seek to up pressure on members for not keeping to agreed quotas via slashing expected oil profits.
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