OPEC+ tends to approve 137,000 bpd increase in oil production for December: Report

Discussions among the OPEC+ alliance are currently focused on approving a slight increase in oil production for December, according to three representative familiar with the ongoing talks ahead of an online meeting scheduled for Sunday.

The representatives, who requested anonymity due to the sensitivity of the information, indicated that the leading countries in the alliance, led by Saudi Arabia, are considering an increase of 137,000 barrels per day (bpd), the same increase that was implemented during October and November.

Bloomberg reported earlier this week that the increase is the likely scenario.

One of the representatives noted that the consultations will continue on Sunday, with the virtual meeting set to begin 5pm Vienna time.

OPEC+ alliance continues to restore 1.65 million barrels of production

The OPEC+ alliance continues to implement a plan for the gradual re-injection of approximately 1.65 million bpd of the production that was cut two years ago, having reactivated part of this quantity earlier this year. This strategy comes despite signs of a long-awaited surplus and warnings of potential greater glut in the market next year.

The International Energy Agency (IEA), based in Paris, expects global crude supply to exceed demand by more than 3 million bpd during the current quarter, with the surplus expected to worsen unprecedentedly next year, at least theoretically.

However, actual production increases have been much lower than announced amounts, as some members seek to compensate for previous overshooting in pumping rates, while others face technical difficulties preventing them from increasing their output, limiting the actual impact of those increases on the market.