The OPEC+ group decided that it will likely keep its oil production policy unchanged when it meets on Wednesday, and will continue with a modest planned increase in its production.
According to Arab Net, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, will meet on September 1 to discuss an agreed increase in oil prices. The former amounted to 400,000 barrels per day for several months to come.
The administration of US President Joe Biden has urged OPEC and its allies to boost oil production to counter high gasoline prices, which the administration sees as threatening the global economic recovery.
And on Monday, Brent fell 16 cents, or 0.2%, to $72.54 a barrel. Crude rose more than 11% last week in anticipation of disruption to oil production due to Hurricane Ida.
But OPEC+ sources said the recent increase in oil prices is temporary, primarily driven by supply disruptions in Mexico and the powerful storm hitting the US Gulf Coast.
Current oil prices around $70 are good,' a source said. OPEC + will most likely continue as planned, with an increase of 400,000 barrels per day.
Another OPEC+ source said it was very likely that the 400,000 bpd increase would take place from September.
Kuwait Oil Minister Mohammed Al-Faris told Reuters on Sunday that OPEC + will discuss this week whether to continue the planned increase, reconsider it or stop the increase, adding that the economies of countries East Asia and China are still affected by COVID-19 and caution should be exercised.
He later told Kuwait News Agency (KUNA) that Kuwait supports any decision taken by OPEC+ ministers by consensus.
