OPEC+ agrees modest oil output hike from November, sources say

OPEC+ will raise oil output from November by 137,000 barrels per day (bpd), the same fairly modest increase as in October, three people close to the matter said on Sunday.

The group comprising the Organization of the Petroleum Exporting Countries plus Russia and some smaller producers has increased its oil output targets by more than 2.6 million bpd this year, equating to about 2.5 percent of global demand.

The shift in policy after years of cuts is designed to regain market share from rivals such as U.S. shale producers.

OPEC+ has agreed in principle on a 137,000 bpd increase, three OPEC+ sources said ahead of an online meeting scheduled for 1100 GMT on Sunday.

In the build up to the meeting, Russia and Saudi Arabia, the two biggest producers in the OPEC+ group, had different views, sources have said.

Russia was advocating for a modest output increase, the same as in October, to avoid pressuring oil prices and because it would struggle to raise output owing to sanctions over its war in Ukraine, two sources said this week.

Saudi Arabia would have preferred double, triple or even quadruple that figure - 274,000 bpd, 411,000 bpd or 548,000 bpd respectively, sources said ahead of the meeting.

OPEC+ output cuts had peaked in March, amounting to 5.85 million bpd in total. The cuts were made up of three elements: voluntary cuts of 2.2 million bpd, 1.65 million bpd by eight members and a further 2 million bpd by the whole group.

The eight producers plan to fully unwind one element of those cuts - 2.2 million bpd - by the end of September. For October, they started removing the second layer of 1.65 million bpd with the increase of 137,000 bpd.

Reuters