Opec+ agrees in principle another large oil output hike: sources

OPEC+ agreed in principle to boost oil output by 548,000 barrels per day (bpd) in September, two Opec+ sources said on Sunday (Aug 3), as the group finishes unwinding its biggest tranche of production cuts amid fears of further supply disruptions from Russia.

A decision is expected at a meeting scheduled to begin at 11 am GMT, amid fresh US demands for India to stop buying Russian oil as Washington seeks ways to push Moscow for a peace deal with Ukraine. Fresh European Union sanctions have also pushed Indian state refiners to suspend Russian oil purchases.

Opec+, which consists of the Organization of the Petroleum Exporting Countries (Opec) and its allies, pumps about half of the world’s oil.

It has been curtailing production for several years to support the market. But it reversed course this year to regain market share, and as US President Donald Trump demanded Opec pump more oil.

Opec+ began output increases in April with a modest hike of 138,000 bpd, followed by larger hikes of 411,000 bpd in May, June and July and 548,000 bpd in August.

If the group agrees to the 548,000 bpd September increase, it will have fully unwound its previous production cut of 2.2 million bpd, while allowing the United Arab Emirates to raise output by 300,000 bpd.

Opec+ still has in place a separate, voluntary cut of about 1.65 million bpd from eight members and a two million bpd cut across all members, which expire at the end of 2026.

Sources have said previously the group had no plans to discuss other tranches of cuts on Sunday. REUTERS