OPEC+ to weigh modest oil output boost at meeting – sources

OPEC+ to weigh modest oil output boost at meeting – sources

LONDON/MOSCOW  - OPEC+ oil producers will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.In January OPEC+ slowed the pace of a planned output increase to match weaker-than-expected demand due to continued coronavirus lockdowns. Saudi Arabia made extra voluntary cuts for February and March.Three OPEC+ sources said an output increase of 500,000 barrels per day from April looked possible without building up inventories, although updated supply and demand balances that ministers will consider at their March 4 meeting will determine their decision."The oil price is definitely high and the market needs more oil to cool the prices down," one of the OPEC+ sources said. "A 500,000 bpd increase from April is an option - looks like a good one."A rally in prices towards $67 a barrel, the highest since