OPEC+ Considers Modest Output Hike Amid Market Pressures

OPEC+ plans a small increase in oil output, potentially 137,000 barrels per day for December, amid Western sanctions on Russia and fears of a supply glut. The decision comes as oil prices recover from a previous low, and the group faces pressure from new sanctions on Russian producers.

OPEC+ is expected to reach an agreement on a modest increase in oil production targets during their Sunday meeting, according to sources close to the discussions. The group, seeking to navigate a delicate balance in the global oil markets, is under pressure due to the risk of an oversupply and recent sanctions on Russia.

Having already increased output by over 2.7 million barrels per day since April, OPEC+ has slowed its pace of increases, with Western sanctions on Russia adding to the complexities. Eight members, including heavyweights like Saudi Arabia and Russia, are considering a 137,000 bpd increase for December, although maintaining current levels is also a possibility.

The meeting, scheduled for 1600 GMT, follows a period of recovery in oil prices, which bounced back to around $65 a barrel from a five-month low. Analysts have suggested that the buyer-seller dynamics and geopolitical factors, including U.S. negotiations and sanctions, will heavily influence OPEC+'s output strategy.

(With inputs from agencies.)