OPEC+ may further accelerate oil output hikes on Saturday, sources say
Eight members of the group - Saudi Arabia, Russia, the UAE, Kuwait, Oman, Iraq, Kazakhstan and Algeria - are scheduled to meet online on Saturday to decide their oil output policy for August.
OPEC+ made a radical change in policy this year when the eight members started to unwind their most recent output cut of 2.2 million bpd starting in April. They then accelerated the hikes in May, June and July to 411,000 bpd for each month, despite the extra supply weighing on crude prices.
Earlier on Friday, other sources told Reuters the group was expected to agree to an increase of 411,000 bpd for August, which remains a possible outcome of Saturday's meeting. All sources declined to be identified by name due to the sensitivity of the matter.
The acceleration of the output hikes came after some OPEC+ members, such as Kazakhstan, produced way over their targets, angering other members that were sticking more closely to agreed cuts.
Kazakh output returned to growth last month and matched an all-time high, as the Chevron-led Tengiz field ramped up, a source familiar with the data told Reuters this week.
OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, is looking to expand its market share against the backdrop of growing supplies from other producers like the United States.
The group pumps about half of the world's oil. As of their decision for July output, the OPEC+ eight have made or announced production increases of 1.37 million bpd. This is 62 per cent of the production cut of 2.2 million bpd that they are unwinding.
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