OPEC+ to Consider Further Oil Output Increase for June

SEATTLE (Oil Monster): Several Opec+ members are to suggest the group accelerates oil output hikes in June for a second consecutive month, as a dispute worsens between members over compliance with production quotas.

Oil prices hit a four-year low in April, dragged down by a US-China trade war and an unexpected decision by Opec+ to increase output by 411,000 barrels per day of oil in May – which was three times more than the group originally planned.

Without specifying how many countries, sources told Reuters that some wanted to increase output by a similar volume to the May increase.

Eight Opec+ countries will meet on May 5 to decide the June output plan.

The Organization of the Petroleum Exporting Countries and the Saudi Arabian authorities did not immediately respond to Reuters’ requests for comment.

Oil prices, which were up in early trade on Wednesday, later turned negative, with global benchmark Brent crude trading down more than 2 percent to less than $66 a barrel.

Saudi Arabia pushed for the speedier output increase in May after Kazakhstan and Iraq angered the kingdom by producing well above quotas, Opec+ sources have said. A meeting of senior Opec+ ministers on April 5 said compliance had to improve.

Kazakhstan, however, said it would prioritise national interests over those of Opec+ when deciding on output levels.

The Kazakh energy minister told Reuters on Wednesday that the country was unable to curtail the output of independent oil majors on its territory and would not shut down its own oilfields as that would damage their future production.

“Kazakhstan’s statement cements our view that Opec+ may implement another accelerated three-month unwind again in the May meeting and it may continue again in July and through the summer,” said Amrita Sen, co-founder of Energy Aspects.

Courtesy: www.msn.com