Reuters: OPEC+ may agree to increase oil production in July

OPEC+ is highly likely to agree to increase oil production in July by 600,000 bpd against 432,000 bpd in June, Report informs referring to Reuters.

Meanwhile, a meeting of the OPEC+ Ministerial Monitoring Committee began in the format of a videoconference.

The committee should discuss the situation on the oil market and make a recommendation on the parameters of the agreement for July. Then this recommendation will be discussed by all the heads of delegations of the OPEC + alliance, whose meeting is scheduled next.

The Financial Times, citing sources, wrote that Saudi Arabia had made it clear to Western allies that it was ready to increase oil production if Russian production fell significantly due to sanctions.

One of the sources told the publication that an immediate increase in production in Saudi Arabia and the UAE was discussed, which could be announced at the OPEC+ meeting on June 2, but no final decisions have yet been made. The increase in production planned for September could be pushed back to July or August, the source said, but such a change would have to be approved.

Since August 2021, the alliance has been increasing production by 400,000 bpd every month, and by 432,000 bpd since May of this year. As of June, the restrictions are 1.296 million bpd, and the alliance expects to completely withdraw from them in September.