OPEC+ Considers 2027 Baseline Adjustments Amid Rising Oil Output

OPEC+ delegates are convening to deliberate on setting baselines for their 2027 production targets during a Wednesday meeting. Discussions could also lead to an accelerated oil output hike for July, with separate talks scheduled for Saturday. Recent discussions have revolved around establishing new production baselines.

These baseline discussions are contentious. While several members, including the UAE and Iraq, have expanded their oil production capacity, others, notably African nations, have experienced declines. On Wednesday, the group might adopt a mechanism to assess these baselines for 2027. However, the meeting will not modify current output policies.

Eight OPEC+ members, increasingly lifting output, are anticipated to decide on a further hike of 411,000 barrels per day for July. This follows similar increases in May and June. As part of previous agreements, some cuts are being phased out, with crucial implications for production policy by 2027.

(With inputs from agencies.)