US EditionOPEC+ set to agree another modest oil output increase: Report
OPEC+ continues gradual output growth to counter competition and low inventories, with a 137,000 barrels per day increase for December, maintaining market balance amid sanctions and demand concerns.
- On Sunday, Saudi Arabia, Russia and six other OPEC+ members are expected to agree to a small December output increase in a virtual meeting Sunday.
- Since April, the Voluntary Eight has boosted production by around 2.7 million bpd as OPEC+ sped up output increases to compete with US shale producers.
- Emily Ashford of Standard Chartered expects a 137,000 bpd hike from December, warning that a rise in OPEC+ quotas may limit actual production impact.
- Adding barrels to the market exposes the group to price falls that could cut profits, and Ashford warned that not reintroducing cuts `would cause panic` among investors; some V8 members must compensate, as Russia is at full capacity.
- Amid sanctions pressure, late-October United States sanctions on Rosneft and Lukoil and rising volumes at sea since September complicate secondary sanctions enforcement and market logistics.
148 Articles
148 Articles
On Sunday 2 November, the Opep+ member countries decided to increase their oil production again in December. The Opep+ group includes Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Oman and Algeria. The strategy of increasing production is to regain market share in the face of increasing competition, particularly from the United States.
Observador
Since April, eight countries have increased their production targets monthly, increasing the total of about 2.7 million barrels per day to face growing competition.
The Organization of Petroleum Exporting Countries and its allies (OPEC+) have agreed this Sunday a small increase in oil production by December and a pause in increases during the first quarter of next year, while the group of producers moderates their plans to recover market share in the face of growing fears of oversupply.
Coverage Details
Bias Distribution
- 48% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
