OPEC+ to stick to oil supply boost plan as Biden heads to Saudi Arabia – sources

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria August 21, 2015. Picture taken August 21. REUTERS/Heinz-Peter Bader/

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LONDON, June 23 (Reuters) – OPEC and allied producing nations including Russia are likely to stick to a plan to ramp up oil output in August, sources said, hoping to ease soaring oil prices and inflationary pressure as US President Joe Biden plans to visit Saudi Arabia. Arabia and the Middle East.

At its last meeting on June 2, the group known as OPEC+ agreed to increase production by 648,000 barrels per day (bpd) in July – or 0.7% of global demand – and the same amount in August, up from the original plan to add 432,000 bpd per month over three months to September.

The move follows months of pressure from the West to address global energy shortages worsened by Western sanctions against Russia over its invasion of Ukraine, and was welcomed by Washington.

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OPEC+ will hold its next meeting on June 30, when it will most likely focus on August production policies.

“OPEC+ is not going to change plans at this month’s meeting,” an OPEC+ source said. Four other sources made similar remarks.

In July, Biden will make his first visit to Riyadh after two years of strained relations over disagreements over human rights, the war in Yemen and US arms shipments to the kingdom. Read more

This year, oil has come close to an all-time high of $147 hit in 2008, although it has since fallen to $111 on concerns about the risk of recession and how fuel demand will be affected by the rise. interest rates.

OPEC+ agreed to cut output by a record amount in 2020 when the pandemic hammered demand. By September, when the agreement expires, the group will have limited spare capacity to further increase production.

The group has struggled to meet monthly increase targets due to underinvestment in oilfields by some OPEC members and, more recently, Russian production losses.

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OPEC Newsroom reporting; Editing by David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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