- Eight OPEC+ members have been rapidly unwinding a set of voluntary production cuts in recent months.
- These output trims were implemented separately from the broader OPEC+ group's production policy.
- The eight nations include OPEC+ heavyweights Russia and Saudi Arabia, alongside Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates.
Eight oil-producing nations of the OPEC+ alliance could hike output by as much as 411,000 barrels per day in July, two OPEC+ delegates told CNBC, continuing a rapid unwinding of voluntary production cuts.
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WATCH HEREMarkets are awaiting a final decision on July production, with the eight countries — heavyweight producers Russia and Saudi Arabia, alongside Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates — set to review market conditions and iron out their output steps on May 31.
These nations have been carrying out two sets of voluntary production cuts.
One, totaling 1.66 million barrels per day, is in effect until the end of next year. Under the other, the countries trimmed their production by an additional 2.2 million barrels per day until the end of the first quarter. They have since agreed to gradually increase output by a combined 1 million barrels per day over April-June, including 411,000 barrel-per-day hikes in each of this and next month.
The OPEC+ delegates, who commented anonymously given the sensitivity of discussions, told CNBC that a further increase of as much as 411,000 barrels per day in July could be agreed this weekend.
Market attention has increasingly shifted away from the official unanimous quotas of OPEC+ — which the group left unchanged on Thursday — to the unwinding of the eight members' voluntary trims. Crude demand typically picks up during the summer, given higher consumption of jet fuel and gasoline for seasonal travel, along with increases in crude burn to produce electricity for air conditioning in several Middle Eastern countries.
Money Report
This could lend support to oil prices which have struggled amid broader market uncertainty triggered by U.S. tariffs.
Ice Brent futures with July expiry were trading at $65.31 per barrel at 12:44 p.m. London time, up 0.63% from the Thursday close price. The front-month Nymex WTI contract was at $62.22 per barrel, higher by 0.61% from the previous day's settlement.
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