The basic scenario of OPEC+ envisages a moderate recovery in oil production in December, two delegates said ahead of a planned video conference on November 2. The third monthly increase is expected to be 137,000 barrels per day, which will be part of a phased recovery of 1.66 million barrels per day to regain market share. This is stated in the Bloomberg material, writes UNN.
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The Saudi-led group has been treading carefully so far, given signs of oversupply and falling demand in China
The decision may also depend on the outcome of trade talks between the US and China.
Oil futures are trading around $66 a barrel after rising amid US sanctions against Russian producers. Nine out of ten analysts surveyed expect an increase of 137,000 barrels per day, and one predicts even more.
Officials explained that the resumption of production is aimed at regaining market share lost to American shale drillers. The political aspect also plays a role: Saudi Crown Prince Mohammed bin Salman is preparing to visit the White House on November 18, while the US is calling for lower fuel prices.
Traders expect clarification on the impact of US sanctions against Rosneft and Lukoil, which could affect the market and OPEC+ strategy.