VIENNA: OPEC+ oil-producing countries will likely agree a further hike in their output target for July when they meet on Sunday, three sources said, though the Iran war has so far prevented several from delivering previous increases.
Another quota increase would show the group is approaching business as usual despite the disruption caused by the Strait of Hormuz closure and the unexpected exit in May of the United Arab Emirates, a member of the Organization of the Petroleum Exporting Countries for almost 60 years.
Seven core members of OPEC+, which groups OPEC and allied producers including Russia, have increased their output quotas from April to June by almost 600,000 barrels per day.
In reality, the group’s production has collapsed due to export cuts by Gulf members, averaging 33.19 million bpd in April versus 42.77 million in February, according to OPEC figures.
The monthly target set by the seven is expected to increase by about 188,000 bpd for July, the sources said. This is the same as the hike agreed for June, which was adjusted down from 206,000 bpd to take into account the UAE exit.
All sources spoke on condition of anonymity and said a final decision had not been made.
OPEC, Saudi and Russian officials did not immediately reply to Reuters requests for comment.
The seven OPEC+ countries are increasing production as part of the gradual unwinding of a 1.65 million bpd production cut that the then eight members agreed in 2023.
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