OPEC + considers production increase at March meeting

OPEC + will discuss the possibility of increasing its oil production levels at the next meeting, OPEC + sources told Reuters on Wednesday.

The group will meet on March 4, where it will discuss increasing production by up to half a million barrels per day starting in April, the sources said.

Members of OPEC + are currently suppressing oil production by more than 7 million barrels per day, but with oil prices on the rise and markets getting the idea that the market could be tightening, OPEC + may consider release the reins.

The last meeting of the OPEC + Joint Ministerial Monitoring Committee held in the first week of February ended without much surprises. For the month of February, another 75,000 bpd were added to the quotas: 65,000 bpd for Russia and 10,000 bpd for Kazakhstan. For the month of March, production quotas were again reduced by another 75,000 bpd, again to Russia (65,000 bpd) and Kazakhstan (10,000 bpd).

But Saudi Arabia had announced in January that it would voluntarily cut an additional million bpd from its quota in February and March.

Saudi Arabia has not committed to cutting this additional 1 million barrels beyond March, so this OPEC + meeting may well end with an additional 1.5 million barrels added to the mix – an additional 500,000 bpd added to quotas. of production and an additional million bpd. From Saudi Arabia.

Oil markets have improved in recent weeks, and crude inventories in the world’s most visible oil market, the United States, finally returned to their five-year average. The price of Brent oil has rebounded to more than $ 67 a barrel, with WTI trading above $ 63 as of Wednesday afternoon. This is the highest level of oil prices in more than a year.

By Julianne Geiger for Oil.eu

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