OPEC+ is discussing a pause in further production increases from October after its next monthly hike, according to delegates familiar with the matter.
While conversations are at an early stage and no firm decisions have been taken yet, Saudi Arabia and its partners already have a tentative plan to complete the revival of a 2.2 million-barrel supply revival in September, with another monthly tranche of 550,000 barrels.
The group will likely wait for some time before moving onto reversing another layer of halted production, amounting to roughly 1.66 million barrels per day, said the delegates. They asked not to be identified as the talks are private.
The Organization of the Petroleum Exporting Countries and its partners have pressured crude prices lower in recent months with their surprise move to open the taps after years of supply restraint. The retreat offers relief for consumers, and a win for President Donald Trump as he pushes for cheaper fuel.
While discussions will need to be finalized in the coming weeks, the prospect of a halt whipsawed crude futures on Wednesday. Brent futures were down 0.9% at $69.57 a barrel.
“Our base case remains that they will be done raising production once the 2.2 million barrel-a-day round of cuts is unwound” at the group's next meeting in early August, Daan Struyven, the bank's co-head of global commodities research, told Bloomberg TV earlier in the day on the sidelines of a seminar OPEC's holding in Vienna.
The eight key OPEC+ nations are due to hold a video-conference on Aug. 3 to finalize their plans for September.
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