OPEC+ Maintains Course Amidst Rising Summer Oil Demand
An OPEC+ panel is expected to stick to its plan to increase oil output in order to regain market share, with an upcoming meeting unlikely to result in policy changes. The group has been increasing production as global summer demand helps absorb extra supply amidst pressure from the U.S.
Ahead of Monday's meeting, delegates from OPEC+ expressed that the panel is expected to adhere to existing strategies for oil output increases. The Organization of the Petroleum Exporting Countries and its allies, led by Russia, are more focused on regaining market share amidst a surge in summer demand.
The Joint Ministerial Monitoring Committee (JMMC), comprising top ministers from OPEC+, will meet at 1200 GMT to review production policies. Sources indicate that the group is unlikely to shift its stance, maintaining a production rise of 548,000 barrels per day in August. Some stakeholders highlighted that it is premature to predict any changes.
Efforts to boost supply come as OPEC+ members, accounting for about half of global oil production, respond to calls from the U.S. administration to assist in stabilizing gasoline prices. The pricing of Brent crude remains strong, supported despite increases in the OPEC+ production quotas.
(With inputs from agencies.)
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