The OPEC+ oil producer group is preparing a small production increase of 100,000 barrels a day, a document seen by Reuters showed, dashing US hopes of a significant increase in supply.
Oil prices rose on Wednesday (3), erasing previous losses.
Brent crude futures were up more than 1% at $101.85 a barrel around 9:30 am. U.S.-traded futures rose more, nearly 2%, to about $96 a barrel.
Ministers from members of the Organization of Petroleum Exporting Countries and allies, including Russia, known as OPEC+, are ready to agree to the small increase in production, equivalent to about 0.1% of global oil demand, a document showed. .
The alliance meets on Wednesday amid US pressure to add barrels to the market, and while most of its members have already exhausted production potential.
OPEC+ has already agreed to increase its oil production targets in September by 100,000 barrels a day, a source at the group said.
“We have always said that the preferred price range is between US$ 60 and US$ 80 per barrel. Today the price is US$ 100. Therefore, we may have to increase production to avoid overheating”, said the Minister of Energy of the Kazakhstan, Bolat Akchulakov, told reporters.
Three OPEC+ sources said they still saw little chance of a change in production policy when commenting on the Kazakh minister’s statement.
The US has pressed Saudi Arabia and the United Arab Emirates, leaders of the alliance, to pump more oil to help contain prices boosted by a recovery in demand and Moscow’s invasion of Ukraine.
Member countries have increased production in line with their targets by around 430,000 to 650,000 barrels a day in recent months.
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