Opec+ set to accelerate oil output in June as prices hit four-year low
Online meeting set for 1000 GMT today
Full ministerial meeting scheduled for May 28
Oil prices have fallen to four-year low
LONDON, May 3 — Eight Opec+ countries meeting today will likely agree a further accelerated oil output hike for June, four sources with knowledge of the matter told Reuters, the latest step in a plan to unwind the group's most recent layer of output cuts.
Last month, the eight countries made a larger-than-planned output hike of 411,000 barrels per day for May, a decision that, together with US trade tariffs, helped to drive oil prices below US$60 (RM255) a barrel to a four-year low.
The countries are due to hold an online meeting to decide June output at 1000 GMT, having brought the meeting forward from Monday. The four sources said a hike along the same lines as the one agreed for May was likely to be approved for June.
Oil prices fell over 1 per cent on Friday as traders braced for more Opec+ supply when concerns of an economic slowdown caused by a trade war between the US and China have prompted forecasters to lower demand growth expectations for this year.
Brent crude futures on Friday closed down 84 cents, or 1.4 per cent, at US$61.29 a barrel.
Reuters reported this week that officials from Saudi Arabia, the de facto leader of Opec+, have briefed allies and industry officials that they are unwilling to prop up oil markets with further supply cuts.
Riyadh has been angered by Kazakhstan and Iraq producing above their Opec+ targets, sources have said.
Analyst Helima Croft of RBC Capital Markets also she did not think a final decision had been made, but 'discussions appear to be leaning in the direction of another three-month increase'.
'Compliance again appears to be the key focus, with Kazakhstan and Iraq continuing to miss their compensation targets, alongside Russia to a lesser extent,' Croft said further.
Opec+, which includes the Organisation of the Petroleum Exporting Countries and allies such as Russia, is cutting output by over 5 million bpd and many of the cuts are due to remain in place until the end of 2026.
The group plans to hold a full ministerial meeting on May 28. — Reuters
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