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Saudis, Russia Have Tentative Deal for Gradual OPEC+ Output Hike

imageCommodities1 hour ago (Jul 01, 2021 07:45AM ET)

(C) Bloomberg. An employee speaks to journalists during a media tour of the Khurais Processing Department in the Khurais oil field in Khurais, Saudi Arabia, on Monday, June 28, 2021. The Khurais oil field was built as a fully connected and intelligent field, with thousands of sensors covering oil wells spread over 150km x 40km in order to increase the efficiency of the plant and reduce emississions, according to a Saudi Aramco statement released to the media.

(Bloomberg) — Saudi Arabia and Russia have a tentative deal to gradually increase OPEC+ oil output in the coming months, delegates said.

Negotiations over the details of the supply hike are still underway, the delegates said, asking not to be named because the information is private. The proposal under discussion would add about 2 million barrels a day to the cartel’s output between August and December, they said.

Any agreement would be conditional on the status of talks between Iran and the U.S., who are seeking to revive a nuclear deal and lift sanctions on the Islamic Republic’s oil exports, delegates said.

The evolving debate between the Organization of Petroleum Exporting Countries and its allies has big implications for the oil market and the broader economy.

Crude has risen around 50% this year, with the recovery in demand from the pandemic outpacing the revival of OPEC+ supplies after last year’s deep cuts. Oil’s surge, combined with a rally in other commodities, has central banks fretting about inflation again. It also shows how Saudi Arabia and Russia are back in the driving seat of the global energy market — a remarkable come back from negative prices just over a year ago.

(C)2021 Bloomberg L.P.

Saudis, Russia Have Tentative Deal for Gradual OPEC+ Output Hike

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