OPEC+ eyes easing restrictions on oil production by 500,000 bpd

OPEC and its allies are considering boosting the group’s collective output by some 500,000 barrels a day when they meet next week, Report informs referring to The Wall Street Journal.

The Saudi-led Organization of the Petroleum Exporting Countries and its Russia-led allies are moving cautiously in ramping up output, delegates said, worried about uncertain demand as the world’s economies recover unevenly.

The group, called OPEC+, slashed output early last year by 9.7 million barrels a day as the pandemic shrunk demand. Cumulative additions over the past year will have brought back some 4 million barrels a day by next month.

The alliance will meet virtually on July 1 to decide what to do next. Delegates are currently looking at adding another 500,000 barrels a day in August, possibly followed by similar bumps higher in subsequent months, delegates said.

The scenario hasn’t been formally discussed among the group, and no decision has been made, they said. In recent months, the group has surprised markets with abrupt changes in direction as it wrangles with gauging demand.