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Saudi Oil Min: Deal to Gradually Boost OPEC Output `Inevitable'

Published 14/06/2018, 11:01
© Reuters.  Saudi Oil Min: Deal to Gradually Boost OPEC Output `Inevitable'

(Bloomberg) -- It’s “inevitable” that OPEC and its allies will agree to boost oil output gradually at their meeting in Vienna next week, said Saudi Arabia’s Energy Minister.

“As usual we will do the right thing,” Khalid Al-Falih told reporters in Moscow on Thursday. “I think we’ll come to an agreement that satisfies most importantly the market.”

Russia and Saudi Arabia, leaders of the deal between the Organization of Petroleum Exporting Countries and other major oil producers to curb output and boost prices, will discuss their next move in Moscow on Thursday as the two nations face off at the soccer World Cup.

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, along with Al-Falih and his Russian counterpart, will discuss how to boost oil production while maintaining their petro-alliance and overcoming opposition to an increase from other OPEC members.

Both nations have proposed plans for the so-called OPEC+ group that would add as much as 1 million barrels a day, about 1 percent of global output, although Riyadh prefers a smaller increase, according to people familiar with the matter.

“I think it will be a reasonable and moderate agreement,” Al-Falih said. “It’s not going to be anything outlandish.”

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