🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

U.S. asks OPEC producers to pump more oil, no specific figure -sources

Published 05/06/2018, 20:18
© Reuters. FILE PHOTO: A man fixes a sign with OPEC's logo next to its headquarter's entrance before a meeting of OPEC oil ministers in Vienna

DUBAI/LONDON (Reuters) - The United States government has unofficially asked Saudi Arabia and some other OPEC producers to raise oil output, but it has not requested a specific figure, three OPEC and industry sources said on Tuesday.

The U.S. request to raise output has been made unofficially from Washington to each of the oil producers rather than to the Organization of the Petroleum Exporting Countries as a group, the sources said.

Earlier on Tuesday, Bloomberg reported that the U.S. government had asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels per day (bpd).

U.S. Treasury Secretary Steven Mnuchin said on May 8, the day that President Donald Trump announced Washington would "withdraw" from the Iran nuclear deal and re-impose sanctions on Tehran, that some countries were willing to increase oil output to offset losses to the global market.

A spokeswoman at the White House's National Security Council, asked about requests for more oil output, said: "We welcome any market-based action that increases energy access and fosters a healthy global economy."

OPEC is in the midst of a supply-cutting deal with Russia and other non-members. With oil recently reaching $80 a barrel, the highest level since 2014, producers are discussing easing some of the cutbacks and will meet to set policy later in June.

"Any decision has to be a collective decision and taken after debate. Now the most important thing for OPEC is to keep this group together," an OPEC source said.

"Even if the U.S. has asked for 1 million, does it mean that OPEC and its allies would raise by 1 million?" the source said.

© Reuters. FILE PHOTO: A man fixes a sign with OPEC's logo next to its headquarter's entrance before a meeting of OPEC oil ministers in Vienna

Reuters reported on May 25 that the producers were considering a supply increase of 1 million bpd, with a final decision to be made at the June 22-23 meeting in Vienna of OPEC and non-OPEC ministers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.