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Energy ministers of the OPEC+ alliance are set to meet early June to review production allocations, while OPEC and its allies are likely to extend production cuts for an additional three months, according to a report by Reuters. 
The report stated that crude stocks, futures prices and calendar spreads are all at similar levels to a year ago, making a significant rise in output unlikely.
The alliance may want to rescind some of the production cuts it implemented over the past year to pre-empt any possible increase by the United States, Canada, or Brazil, and avoid conceding more market share, but current circumstances may limit this in light of tightening market conditions and rising prices.
The news agency pointed out that the average futures price for standard Brent crude oil reached $84 per barrel since the beginning of May, in line with the average price since the start of the century after adjusting for inflation.
Meanwhile, prices are high by only $6, or 7%, compared to their levels a year ago, when the group was planning to reduce production in order to support prices, according to the report.
Logo ofOPEC+
Energy ministers of the OPEC+ alliance are set to meet early June to review production allocations, while OPEC and its allies are likely to extend production cuts for an additional three months, according to a report by Reuters.
The report stated that crude stocks, futures prices and calendar spreads are all at similar levels to a year ago, making a significant rise in output unlikely.
The alliance may want to rescind some of the production cuts it implemented over the past year to pre-empt any possible increase by the United States, Canada, or Brazil, and avoid conceding more market share, but current circumstances may limit this in light of tightening market conditions and rising prices.
The news agency pointed out that the average futures price for standard Brent crude oil reached $84 per barrel since the beginning of May, in line with the average price since the start of the century after adjusting for inflation.
Meanwhile, prices are high by only $6, or 7%, compared to their levels a year ago, when the group was planning to reduce production in order to support prices, according to the report.
