OPEC to defy Biden and keep oil production target

OPEC to defy Biden and keep oil production target
Short Url
Updated 30 August 2021

OPEC to defy Biden and keep oil production target

OPEC to defy Biden and keep oil production target


OPEC+ is set to ignore calls from the U.S. and stick to its planned modest production increase, according to Reuters.

The news agency is reporting that three sources in the organisation have said it is likely to reaffirm its goal of increasing output by an additional 400,000 bpd when it meets on Wednesday.

Washington has called for Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia to ramp up production of oil to tackle a rise in energy costs in the United States.

But the OPEC+ sources told Reuters the recent rise in oil prices was temporary, driven mainly by disruption of supply in Mexico and the severe storm hitting the U.S. Gulf Coast over the weekend.

"Current oil prices around $70 are okay. OPEC+ is likely to continue as planned with the increase of 400,000 bpd," said one source.

Another OPEC+ source said it was "very likely" that the 400,000 bpd increase would go ahead from September.

Kuwait oil minister Mohammad al-Fares on Sunday told Reuters that this week OPEC+ would discuss whether it would continue with its planned increase or reconsider it and halt the rise adding that economies of East Asian countries and China were still affected by COVID-19 and caution should be exercised.

On Monday, Brent was down 16 cents or 0.2 percent at $72.54 a barrel by 0654 GMT. It rose more than 11 percent last week in anticipation of disruptions to oil production from Hurricane Ida.