OPEC+ is ready to increase oil production in December as its impact will be small if some members’ plan to make deeper cuts to compensate for overproduction is implemented in September and subsequent months , two OPEC+ sources said on Thursday.
The Organization of the Petroleum Exporting Countries and its allies such as Russia, known as OPEC+, are expected to increase production by 180,000 barrels per day in December, part of a plan to begin ending to its latest round of production cuts.
Two OPEC+ members, Iraq and Kazakhstan, have committed to additional cuts totaling 123,000 bpd in September, as well as additional cuts in coming months, to offset higher previous pumping at agreed levels.
“When the compensation plan and the production figures of these countries are clear for the month of September, this will make it possible to introduce the increase, the impact of which will be negligible,” said one of the OPEC+ sources. , referring to the December increase.
The Saudi government communications office and OPEC headquarters did not immediately respond to requests for comment.
Earlier on Thursday, the Financial Times, citing people familiar with Saudi thinking, reported that Saudi Arabia was committing to OPEC+ increasing production as planned on December 1 and abandoning its unofficial target of an oil price of 100 dollars per barrel.
OPEC and Saudi Arabia have repeatedly stated that they do not target a certain price and that they make their decisions based on market fundamentals and with the aim of balancing supply and demand.
The increase in production in December is not intended to regain market share, but to allow a small number of countries to gradually abandon their voluntary production cuts, one of the sources said. OPEC+.
Top OPEC+ ministers are due to meet on October 2 to take stock of the market and are not expected to change their policies.
Russian Deputy Prime Minister Alexander Novak told Reuters on Thursday that there was no change in OPEC+’s plans to begin gradually reducing oil production from December.
Ministers could meet again in November, a third OPEC+ source said.
