Two sources cited by Reuters say OPEC+ will probably stick with a planned 400k bpd output hike at next Wednesday’s meeting, though there is some talk about boosting output further.
The report said oil at $90 might prompt them to consider more output, with Russia worried that US shale could pick up.
Still, that’s a minority view and there’s little appetite to deviate from the script, which is what the market entirely expects.
“We are very likel yto for another 400,000 barrels per day,” one OPEC source said in the report.
A bigger question is whether OPEC can meet quotas. Right now a number of nations are failing to pump as much as they’re allowed and it will only get worse as quotas grow. That’s a big reason why there’s a growing view that oil will rise to $100 in the latter half of the year. Others believe that geopolitical tensions are the driver for oil at the moment.
In any case, WTI is up $1.31 to $86.94 at the moment and brent is at a new 7-year high.