At its last meeting on June 2, the group known as OPEC+ agreed to increase production by 648,000 barrels per day (bpd) in July – or 0.7% of global demand – and to the same amount in August, when the original plan was to add 432,000 bpd per month over three months to September.
The move follows months of Western pressure to address global energy shortages aggravated by Western sanctions against Russia following its invasion of Ukraine, and was welcomed by Washington.
OPEC+ is holding its next meeting on June 30, where it will most likely focus on August production policies.
“OPEC+ is not going to change plans at this month’s meeting,” an OPEC+ source said. Four other sources made similar remarks.
In July, Mr Biden will make his first visit to Riyadh after two years of strained relations due to disagreements over human rights, the war in Yemen and US arms deliveries to the kingdom.
This year, oil came close to the all-time high of $147 reached in 2008, although it has since fallen back to $111 on concerns about the risk of recession and the impact of rising interest rates on the economy. fuel request.
OPEC+ agreed to cut production by a record amount in 2020 when the pandemic hit demand. In September, when the agreement expires, the group will have limited spare capacity to further increase production.
The group has struggled to meet monthly increase targets due to underinvestment in the oil fields by some OPEC members and, more recently, Russian production losses.