OPEC meets Russian Federation and allies to agree oil output boost

OPEC meets Russian Federation and allies to agree oil output boost

And despite the push for wider production growth of 1 million barrels per day (bpd), actual output increases of around 600,000bpd are being forecasted due to the fact other OPEC member states can not grow their supplies.

After an OPEC meeting in Vienna, Emirati Energy Minister Suhail al-Mazrouei said the cartel chose to fully comply with its existing production ceiling.

OPEC agreed to a modest rise in oil production from next month but the group gave no clear targets, leaving traders guessing how much more it will actually pump.

By not setting individual targets, the OPEC deal appeared to give Saudi Arabia the leeway to produce more than its previous OPEC quota and fill the gap left by those such as Venezuela who can not pump enough to meet their official allocation.

The production limits by the Organization of the Petroleum Exporting Countries and Russian Federation since 2016 have helped increase oil prices, with the benchmark US crude contract hitting its highest level in more than three years in May.

Saudi Energy Minister Khalid al-Falih said OPEC and non-OPEC combined would pump roughly an extra 1 million barrels per day (bpd) in coming months, equal to 1 percent of global supply.

"Each country can only pro-rata increase their production and the majority of them can't increase their production at all", Wright said during an interview on "Countdown to the Closing Bell".

After OPEC's deal on Friday, Trump tweeted: "Hope OPEC will increase output substantially".

Instead the producers are seeking to cut no deeper than 1.2 million bpd, the target they set in November 2016.

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Although higher prices are better for the oil industry, Wright says there must be a balance to prevent a dramatic spike in oil prices.

Production levels from participating members put compliance at more than 100 percent, though some of that is attributed to Venezuela.

Worldwide marker, Brent, traded above US$100 a barrel for several years until 2014, dropping to nearly US$26 in 2016 and then recovering to over US$80 last month.

Top global exporter Saudi Arabia will increase output by hundreds of thousands of barrels, he said, with exact figures to be decided later.

Zanganeh has said that if OPEC returned to regular compliance, the group would raise output by around 460,000 bpd.

The performance of the United Arab Emirates' oil minister and OPEC President Suhail Mazrouei was a master class in how to avoid a question.

OPEC sources also said Iran had demanded that US sanctions be mentioned in the group's post-meeting communiqué. Russia, a non-member, is the second largest oil producer after Saudi. Venezuela will raise its production when it can.

The meeting of the ministerial monitoring committee of OPEC+, which usually proceeds from the recommendations and future scenarios of the technical committee, was held on June 21 in Vienna.

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