OPEC+ Is Poised to Cool Oil Market With Extra Production - Bloomberg

OPEC+ Is Poised to Cool Oil Market With Extra Production - Bloomberg

OPEC+ is poised to agree a production increase this week as it seeks to cool a rapid rally in crude prices.

There’s a widespread view within the group that the market can absorb additional barrels, according to people familiar with the deliberations. While the usual differences are present -- with Saudi Arabia cautious and Russia keen to open the taps -- all sides are ready to increase production, they said, asking not to be named because the information was private.

That could put the group on track to implement the majority of the 1.5 million barrel-a-day output increase that’s up for debate on Thursday.

An agreement to hike OPEC+ supply would be the latest sign that the global economy is recovering from the damage wrought by the coronavirus pandemic. The cartel has endured a year of pain, dominated by the deepest output cuts in its history. But the sacrifice has paid off, reviving oil prices back to pre-crisis levels above $60 a barrel.