OPEC+ to go ahead with plans to boost oil output

OPEC+, which groups OPEC members and its allies, will go ahead with a planned oil production increase in December but first need to cut output to address overproduction by some members, two well-informed sources told Reuters.

The output increase in December is not about regaining market share, it is about a small number of countries phasing out their voluntary output cuts, one of the sources said.

OPEC+ is scheduled to raise output by 180,000 barrels per day in December, as part of a plan to ease the voluntary cut on oil supplies.

Iraq and Kazakhstan have pledged to cut 123,000 bpd in September to compensate for earlier pumping above agreed levels.

The sources said the plan didn't represent any major change from existing policy after the Financial Times reported Saudi Arabia is committed to OPEC+ raising production on Dec. 1 and dropping its unofficial $100 a barrel oil price target to win back market share.

OPEC and Saudi Arabia have repeatedly said they do not target a certain price and make decisions based on market fundamentals and in the interest of balancing supply and demand.

A panel of top ministers from OPEC+ called the Joint Ministerial Monitoring Committee is scheduled to meet on Oct. 2 to review the market and is not expected to make any changes to policy.

Russian Deputy Prime Minister Alexander Novak told Reuters on Thursday that there were no changes to OPEC+ plans to start phasing out oil production cuts from December.