Opec+ seen sticking to planned output hike as oil prices rebound

Opec+ seen sticking to planned output hike as oil prices rebound

Bloomberg

The Organisation of Petroleum Exporting Countries (Opec) and its allies are expected to press on with their planned revival of oil production when they meet next week, as prices bounce back from their August stumble. The coalition led by Saudi Arabia and Russia is gradually restoring the vast amount of crude production halted during the pandemic, and will probably ratify the next monthly installment when it gathers on September 1, according to a Bloomberg survey of traders and analysts. Several Opec+ delegates privately predict the same outcome. Crude markets faltered earlier this month as the resurgent pandemic threatened demand in China and the US. But prices have since recovered after fuel use proved resilient to the latest coronavirus wave, giving the Opec and its partners more breathing space. “Uncertainties over the world economy and the growth recovery in China have largely peeled away,” said Ed Morse, head of commodities research at Citigroup Inc. “There’s good evidence that the bottom in oil prices was temporary and overdone, and if the recovery continues, Opec+ would likely stick to the plan.” The cartel has already restarted roughly 45% of the unprecedented production volume shuttered last spring. Under a plan spearheaded by Saudi Energy