Oil producers to uphold small output increase

BENOÎT PELEGRINThe world's leading oil producers are expected to uphold a July deal to slowly boost output, despite US pressure to go further.OPEC members led by Saudi Arabia along with allies including Russia, known collectively as OPEC+, decided in July to raise output by 400 000 barrels per day (bpd) each month from August, in a deal thrashed out after weeks of wrangling.The move is aimed at supporting a global economic recovery, which has been battered by the coronavirus pandemic a crisis that sent oil demand plummeting last year.But US national security adviser Jake Sullivan said last month that the production boost agreed in July was "simply not enough" to fuel a global recovery.However, analysts said Wednesday afternoon's videoconference between the 23 OPEC+ partners were likely to uphold the July decision."It would be a surprise if they do anything else at the moment, despite pressure from the White House, given current price levels, demand and uncertain outlook," said Craig Erlam, a market analyst from trading firm Oanda.Helima Croft of RBC Capital Markets also said "staying the course is the most likely outcome" though "some members have expressed concern about the fragility of demand, most notably Kuwait".Kuwait Oil Minister Mohammed Al-Fares was quoted by the official Kuna agency as saying on Sunday that "all options" were still on the table. "No decision has been taken," he said.In a rare challenge to OPEC leader Saudi Arabia in July, the United Arab Emirates only agreed to the deal after a compromise was reached to adjust its output quotas next May, together with several other countries, meaning their actual cuts will be less.Since May this year, OPEC+ members have raised oil output bit by bit with the aim of eventually returning to pre-pandemic production levels, after slashing them more than a year ago when the coronavirus pandemic crushed demand. -Nampa/AFP

Oil producers to uphold small output increase

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