(Bloomberg) — OPEC will likely raise oil output again in November as the group continues its strategy to reclaim global market share, according to people familiar with its plans.
The alliance led by Saudi Arabia will consider adding at least as much as the 137,000 barrel-a-day hike scheduled for October when it meets online Oct. 5, the people said. They asked not to be identified as the talks are private.
The Organization of the Petroleum Exporting Countries and its allies have started to revive a new layer of halted output, amounting to 1.66 million barrels a day, in monthly stages despite warnings from across the oil industry of an impending surplus.
So far, the oil market has absorbed additional barrels from the group without significant ructions, and Brent futures have risen 3% this month.
Still, the planned October hike is sharply lower than the increments that the group announced in the two prior months, and delegates emphasized at the time that the actual supply boost would be even smaller because some countries lack the ability to increase.
The upcoming meeting also takes place against the backdrop of a planned trip by Saudi Crown Prince Mohammed bin Salman to Washington in November. He will meet President Donald Trump, who has repeatedly called for lower fuel prices while he seeks to tame inflation and reduce interest rates.
No final decision has been made yet, and deliberations could still evolve ahead of Sunday’s meeting, the people said. The expectation for the meeting was first reported by Reuters.
Oil Traders Expect OPEC to Agree Another Production Increase
–With assistance from Salma El Wardany.
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