OPEC+ discusses July oil output hike, focus on 411,000 bpd, sources say
The eight OPEC+ members, who began an online meeting shortly after 0900 GMT, were also discussing other options, an OPEC+ delegate said. On Thursday, sources familiar with OPEC+ talks said they could discuss an increase larger than 411,000 bpd for July.
The eight have been raising output more rapidly than earlier planned, even though the extra supply has weighed on prices. The strategy of group leaders Saudi Arabia and Russia is aimed partly at punishing over-producing allies and to win back market share, Reuters has reported.
All sources declined to be identified by name due to the sensitivity of the matter. OPEC and authorities in Russia and Saudi Arabia did not respond to requests for comment sent on Friday.
Kazakhstan's statement on Thursday that it won't cut production has sparked debate in OPEC+, some of the sources said on Friday, with one saying that this factor may tilt discussions towards a larger output hike on Saturday.
While eight leading OPEC+ members are increasing supply, some of those are being asked to temper those increases to compensate for producing more than their monthly quotas. Kazakhstan's statement suggested it may not do so.
OPEC+ may discuss oil output hike larger than 411,000 bpd for July
'Kazakhstan's repeated public displays of production defiance do raise the risk of an even bigger output increase,' said Helima Croft of RBC Capital Markets, adding that she still saw a 411,000 bpd hike for July as likely.
Kazakhstan has been pumping far above its OPEC+ target, a factor that has angered other OPEC+ members and helped prompt the group to proceed with plans to hike output beginning in April, sources said at the time.
United Arab Emirates Energy Minister Suhail Mohamed Al Mazrouei, asked on Tuesday about the output plan for July, said OPEC+ was doing its best to balance the oil market.
Oil prices fell to a four-year low in April, slipping below $60 per barrel after OPEC+ said it was tripling its output hike in May and as U.S. President Donald Trump's tariffs raised concerns about global economic weakness. Prices closed just below $63 on Friday.
OPEC+ includes OPEC members and allies such as Russia. Output increases that began in April are aimed at unwinding some 2.2 million bpd of voluntary output cuts by eight leading member states.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
3 hours ago
- Express Tribune
State Dept starts firing over 1,350 workers
A general view of the US state Department building in Washington, DC, US, July 11, REUTERS The State Department began firing more than 1,350 US-based employees on Friday as the administration of President Donald Trump presses ahead with an unprecedented overhaul of its diplomatic corps, a move critics say will undermine US ability to defend and promote US interests abroad. The layoffs, which affect 1,107 civil service and 246 foreign service officers based in the United States, come at a time when Washington is grappling with multiple crisis on the world stage: Russia's war in Ukraine, the almost two year-long Gaza conflict, and the Middle East on edge due to high tension between Israel and Iran. "The Department is streamlining domestic operations to focus on diplomatic priorities," an internal State Department notice that was sent to the workforce said. "Headcount reductions have been carefully tailored to affect non-core functions, duplicative or redundant offices, and offices where considerable efficiencies may be found," it added.
Business Recorder
14 hours ago
- Business Recorder
State Department starts firing more than 1,350 workers in Trump's shake-up of diplomatic corps
WASHINGTON: The State Department will start firing more than 1,350 U.S-based employees on Friday as the administration of President Donald Trump presses ahead with an unprecedented overhaul of its diplomatic corps, a move critics say will undermine U.S. ability to defend and promote U.S. interests abroad. The layoffs will cover 1,107 civil service and 246 foreign service officers based in the United States, according to an internal State Department notice sent to the workforce and seen by Reuters. 'The Department is streamlining domestic operations to focus on diplomatic priorities,' the notice said. 'Headcount reductions have been carefully tailored to affect non-core functions, duplicative or redundant offices, and offices where considerable efficiencies may be found,' it added. The move is the first step of a restructuring that Trump has sought to ensure U.S. foreign policy is aligned with his 'America First' agenda. Former diplomats and critics say the firing of foreign service officers risks America's ability to counter the growing assertiveness from adversaries such as China and Russia. Trump in February ordered Secretary of State Marco Rubio to revamp the foreign service to ensure that the Republican president's foreign policy is 'faithfully' implemented. He has also repeatedly pledged to 'clean out the deep state' by firing bureaucrats that he deems disloyal. The shake-up is part of an unprecedented push by Trump to shrink the federal bureaucracy and cut what he says is wasteful spending of taxpayer money. The reorganization had been expected to be largely concluded by July 1 but did not proceed as planned amid ongoing litigation, as the State Department waited for the U.S. Supreme Court to weigh in on the Trump administration's bid to halt a judicial order blocking mass job cuts. On Tuesday, the Court cleared the way for the Trump administration to pursue the job cuts and the sweeping downsizing of numerous agencies, a decision that could lead to tens of thousands of layoffs while dramatically reshaping the federal bureaucracy.
Business Recorder
14 hours ago
- Business Recorder
Wheat steady-down 3 cents, corn down 2-3, soy steady-down 4
CHICAGO: The following are U.S. expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Friday. Note: The U.S. Department of Agriculture is expected to release its monthly World Agricultural Supply and Demand Report at 11:00 a.m. CST. Wheat - Steady to down 3 cents per bushel CBOT wheat ticked down as the U.S. dollar gained strength and traders positioned prior to the release of the USDA's monthly supply and demand report. Ahead of the USDA's monthly supply-demand and crop production reports on Friday, analysts surveyed by Reuters on average expect the government to lower its estimate of U.S. 2025/26 wheat production. Only slight changes were seen for the USDA's forecasts of 2025/26 U.S. and global wheat ending stocks. European Union production of soft wheat, the bloc's main cereal crop, is expected to reach 123.4 million metric tons this year, a 9.6% increase from last year's poor harvest, farming association Copa Cogeca said on Friday. CBOT September soft red winter wheat was last down 3 cents to $5.51-1/2 per bushel. K.C. September hard red winter wheat was last down 5 cents to $5.29-3/4 per bushel. Minneapolis September wheat was last down 2-3/4 cents to $6.29 a bushel. Wheat steady-up 6 cents, corn steady-down 2, soy down 1-7 Corn - Down 2 to 3 cents per bushel CBOT corn eased on favorable crop conditions and a firming dollar ahead of the USDA's supply/demand report. A favorable mild, showery pattern is expected to aid corn pollination in the U.S. Midwest, according to forecaster Commodity Weather Group. Ahead of Friday's monthly USDA supply/demand reports, analysts surveyed by Reuters on average expected the government to lower its forecasts of U.S. corn inventories remaining at the end of the 2024/25 and 2025/26 marketing years. CBOT December corn was last down 2-1/4 cents to $4.14-1/4 per bushel. Soybeans - Steady to down 4 cents per bushel CBOT soybean futures Chicago dipped on favorable weather in the U.S. Midwest growing region as investors awaited the results of the USDA's monthly supply/demand report. Ahead of Friday's monthly USDA supply/demand reports, analysts surveyed by Reuters on average expected the government to raise its forecasts of U.S. soybean inventories remaining at the end of the 2024/25 and 2025/26 marketing years. Brazilian government crop supply agency Conab estimated the country's 2024/25 soybean harvest at 169.5 million tons, compared with its month-ago estimate of 169.60 million CBOT November soybeans were last down 3-1/4 cents to $10.10-1/2 per bushel.
