OPEC has two main options for June meeting, both foresee output rise
Saudi Arabia and Russia are discussing two main scenarios for a meeting of OPEC and its oil-producer allies in June and both frameworks propose increased crude output from the second half of 2019, two sources familiar with the matter said, Trend reports citing Reuters.
Russia wants to ease the cuts of 1.2 million barrels per day (bpd) being carried out by the so-called OPEC+ alliance, the sources said.
The United States has also urged the Organization of the Petroleum Exporting Countries to boost supply.
The sources said OPEC’s first scenario was to eliminate over-compliance with agreed cuts, which would mean increasing output by around 0.8 million bpd.
Over-compliance arose from lower exports and output from Iran and Venezuela because of U.S. sanctions, and Saudi output reductions that have been more than called for by the OPEC+ pact.
OPEC and its allies are effectively curtailing production by close to 2 million bpd.
Another option is to ease the agreed cuts from 1.2 million bpd to 0.9 million bpd, which would mean raising output by some 0.3 million bpd, one source said.
OPEC meets on June 25-26 in Vienna.