Opec+ may speed oil output hikes amid Israel-Iran fighting: Rosneft head
Opec+ shocked oil markets in April by agreeing to an output hike for May despite weak prices and slowing demand
Opec+ group of leading global oil producers could bring forward its output hikes by around a year from the initial plan, Igor Sechin, head of Russia’s largest oil producer Rosneft, said on Saturday.
He also said that the decision by the Opec+ to speed up the output increase now looked farsighted and justified in light of the confrontation between Israel and Iran.
The Organization of the Petroleum Exporting Countries and its allies, led by Russia, shocked oil markets in April by agreeing to a bigger-than-expected output hike for May despite weak prices and slowing demand.
Opec+ has since decided to continue with more than planned hikes.
“The announced increase in production since May of this year is three times higher than the alliance’s initial plan. In addition, the entire increase in Opec+ production could be shifted a year ahead of plan,” he said without elaborating.
“The decision taken by Opec leaders to forcefully increase production looks very farsighted today and, from the market’s point of view, justified, taking into account the interests of consumers in light of the uncertainty regarding the scale of the Iran-Israel conflict,” he added.
Opec+ crude output represents about 41 per cent of global oil production. The group’s main objective is to regulate the supply of oil to the global market.