Latest news with #outputcuts
Zawya
29-05-2025
- Business
- Zawya
OPEC+ adopts plan for 2027 baselines ahead of July output hike talks
LONDON/MOSCOW - OPEC+ agreed on Wednesday to establish a mechanism for setting baselines for its 2027 oil production, while OPEC+ sources said that separate talks on Saturday could agree a further accelerated oil output hike for July. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines - production levels from which each member makes cuts or increases - for the last few years. Baselines and quotas are controversial because some members such as the United Arab Emirates and Iraq have increased their production capacity, pressing the case for higher quotas, while others such as African members have seen declines. Angola quit the group in 2024 over a disagreement on its production target. On Wednesday, the 22-member group tasked OPEC headquarters with developing a mechanism to assess countries' maximum production capacity, to be used as reference for 2027 output baselines for all countries, OPEC+ said in a statement. OPEC+ pumps about half the world's oil and has agreed three layers of output cuts since 2022 to support the market. Two of these are in place until the end of 2026 and one is currently being unwound by eight members. Wednesday's meeting did not change any of these policies. On Saturday, eight OPEC+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels per day, the same as in May and June, two delegates said. They declined to be identified by name due to the sensitivity of the matter. The May and June hikes are faster than originally planned, and have weighed on oil prices. The strategy of group leaders Saudi Arabia and Russia is partly to punish over-producing allies and to win back market share, Reuters has reported. OPEC+ itself cited "the current healthy market fundamentals, as reflected in the low oil inventories" as its reasoning for the June production decision on May 3. The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire. Oil prices fell to a four-year low in April below $60 per barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about $65. Earlier this month, sources told Reuters that the eight countries, in addition to an output hike of 411,000 bpd for July, may unwind the remainder of the most recent cut by the end of October. OPEC itself also met on Wednesday and only discussed administrative matters, a source said. OPEC+ will hold its next meeting on Nov. 30. (Reporting by Alex Lawler, Ahmad Ghaddar, Olesya Astakhova, Maha El Dahan and Yousef Saba; Editing by Kirsten Donovan and Emelia Sithole-Matarise)
Globe and Mail
28-05-2025
- Business
- Globe and Mail
OPEC+ may discuss 2027 baselines and agree to July output hike this week, sources say
OPEC+ may discuss issues around its baselines for 2027 production at its meeting on Wednesday, two delegates from the group said, while separate talks due on Saturday could agree a further accelerated oil output hike for July. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines – production levels from which each member makes cuts or increases – for the past few years. Baseline issues are controversial because some members such as the United Arab Emirates and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines. The 22-member group on Wednesday is likely to ask OPEC headquarters to prepare a mechanism to help establish the baseline assessment for 2027, one of the delegates said. That meeting is not expected to change output policy, OPEC+ sources have said. On Saturday, the eight OPEC+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels a day, the same as in May and June, the delegates said. Why Canadian energy is a secret bargain, spurring a hostile takeover bid in the oil sands OPEC+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members. The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire. In April, eight OPEC+ members began to unwind the group's most recent layer of output cuts, and for May and June made larger-than-expected hikes of 411,000 barrels a day. OPEC+ sources have told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 b/d output hike for July. All sources declined to be identified by name due to the sensitivity of the matter. Oil fell to a four-year low in April below $60 a barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about $65. Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 b/d output hike for July, may unwind the remainder of the most recent cut by the end of October.
Free Malaysia Today
28-05-2025
- Business
- Free Malaysia Today
Opec+ may discuss 2027 baselines and agree July hike this week
Opec+ has agreed three layers of output cuts since 2022. (EPA Images pic) LONDON : Opec+ may discuss issues around its baselines for 2027 production at its meeting today, two delegates from the group said, while separate talks due on Saturday could agree a further accelerated oil output hike for July. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines – production levels from which each member makes cuts or increases – for the last few years. Baseline issues are controversial because some members such as the UAE and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines. 'The 22-member group is likely to ask Opec headquarters today to prepare a mechanism to help establish the baseline assessment for 2027,' one of the delegates said. 'That meeting is not expected to change output policy,' Opec+ sources said. 'On Saturday, the eight Opec+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels per day (bpd), the same as in May and June,' the delegates said. Opec+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members. The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire. In April, eight Opec+ members began to unwind the group's most recent layer of output cuts, and for May and June made larger-than-expected hikes of 411,000 barrels per day. Opec+ sources have told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 bpd output hike for July. All sources declined to be identified by name due to the sensitivity of the matter. Oil fell to a four-year low in April below US$60 per barrel after Opec+ said it was accelerating its output hike in May and as US President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about US$65. Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 bpd output hike for July, may unwind the remainder of the most recent cut by the end of October.
Zawya
28-05-2025
- Business
- Zawya
OPEC+ may discuss 2027 baselines and agree July hike this week, sources say
OPEC+ may discuss issues around its baselines for 2027 production at its meeting on Wednesday, two delegates from the group said, while separate talks due on Saturday could agree a further accelerated oil output hike for July. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines - production levels from which each member makes cuts or increases - for the last few years. Baseline issues are controversial because some members such as the United Arab Emirates and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines. The 22-member group on Wednesday is likely to ask OPEC headquarters to prepare a mechanism to help establish the baseline assessment for 2027, one of the delegates said. That meeting is not expected to change output policy, OPEC+ sources have said. On Saturday, the eight OPEC+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels per day, the same as in May and June, the delegates said. OPEC+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members. The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire. In April, eight OPEC+ members began to unwind the group's most recent layer of output cuts, and for May and June made larger-than-expected hikes of 411,000 barrels per day. OPEC+ sources have told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 bpd output hike for July. All sources declined to be identified by name due to the sensitivity of the matter. Oil fell to a four-year low in April below $60 per barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about $65. Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 bpd output hike for July, may unwind the remainder of the most recent cut by the end of October. (Reporting by Alex Lawler, Ahmad Ghaddar, Olesya Astakhova, Maha El Dahan and Yousef Saba; Editing by Emelia Sithole-Matarise)
Reuters
28-05-2025
- Business
- Reuters
OPEC+ may discuss 2027 baselines and agree July hike this week, sources say
LONDON/MOSCOW, May 28 (Reuters) - OPEC+ may discuss issues around its baselines for 2027 production at its meeting on Wednesday, two delegates from the group said, while separate talks due on Saturday could agree a further accelerated oil output hike for July. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines - production levels from which each member makes cuts or increases - for the last few years. Baseline issues are controversial because some members such as the United Arab Emirates and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines. The 22-member group on Wednesday is likely to ask OPEC headquarters to prepare a mechanism to help establish the baseline assessment for 2027, one of the delegates said. That meeting is not expected to change output policy, OPEC+ sources have said. On Saturday, the eight OPEC+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels per day, the same as in May and June, the delegates said. OPEC+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members. The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire. In April, eight OPEC+ members began to unwind the group's most recent layer of output cuts, and for May and June made larger-than-expected hikes of 411,000 barrels per day. OPEC+ sources have told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 bpd output hike for July. All sources declined to be identified by name due to the sensitivity of the matter. Oil fell to a four-year low in April below $60 per barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about $65. Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 bpd output hike for July, may unwind the remainder of the most recent cut by the end of October.
