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“OPEC +” meets… expectations of stabilizing production policies

At its last meeting in early June, OPEC + decided to increase production each month by 648,000 barrels per day in July and August, compared to a previous plan to add 432,000 barrels per day over three months.

The OPEC+ group consists of the member countries of the Organization of the Petroleum Exporting Countries and allies such as Russia.

Washington welcomed the producers’ decision in June, which came after pressure from the West on OPEC+ to increase production to help lower oil prices.

And global prices recorded their highest levels since 2008 after the West imposed sanctions on Russia over the Ukraine crisis, which began on February 24, which Moscow calls a “special military operation”.

Prices have fallen since peaking in March this year, but have risen above $115 a barrel this week due to tight supplies and concerns about OPEC’s weak ability to increase production.

French President Emmanuel Macron told his US counterpart Joe Biden this week that Saudi Arabia and the United Arab Emirates, the only two OPEC members with large surplus production capacity, can only hardly increase oil production.

Biden will travel on a Middle East tour including Saudi Arabia next month and is widely expected to pressure Riyadh to increase production.

At least five delegates to OPEC + said that this week’s meeting will focus on stabilizing production policies in August and will not discuss the September policy, according to the “Reuters” agency.

Two other delegates said the issue of post-August production could come up, but it was not clear what steps could be taken.

The OPEC + ministers from the Joint Ministerial Monitoring Committee are scheduled to start their discussions today, Thursday, from 1100 GMT, and then a comprehensive meeting of the group will be held online.

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