OPEC + will keep the policy of increasing oil production unchanged

Three OPEC + sources told Reuters the group would likely keep its oil production policy unchanged at its Wednesday meeting and continue a planned modest increase in production.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC +, will meet on September 1 to discuss a previously agreed increase of 400,000 barrels per day for several months future.

The administration of US President Joe Biden has urged OPEC and its allies to increase oil production to counter high gasoline prices, which the administration sees as a threat to the global economic recovery.

On Monday, Brent fell 16 cents, or 0.2%, to $ 72.54 a barrel. Crude rose more than 11% last week in anticipation of a disruption in oil production from Hurricane Ida.

But OPEC + sources said the recent increase in oil prices was temporary, mainly due to the disruption of supplies in Mexico and the severe storm that hit the US Gulf of Mexico coast.

A source said: “Current oil prices around $ 70 are good. OPEC + will likely continue as planned, with an increase of 400,000 barrels per day.”

Another source within OPEC + said it was “highly likely” that the 400,000 barrels per day increase would occur from September.

Kuwaiti Oil Minister Muhammad Al-Faris told Reuters on Sunday that OPEC + will discuss this week whether to continue the planned increase, reconsider it or halt the increase, adding that the economies East Asian countries and China are still affected by Covid-19 and caution should be exercised.

He later told the Kuwaiti News Agency (KUNA) that Kuwait supported any decision taken by consensus by OPEC + ministers.