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Logo of OPEC
OPEC+ will likely stick to a modest rise in its June oil output increase plan at its meeting today, May 5, amid weaker demand prospects due to the continued expansion of COVID-19 lockdowns in China, Reuters reported.
Reuters quoted some OPEC+ officials as saying that the alliance could agree to a monthly increase in oil production of 432,000 barrels per day (bpd) for June, in line with the OPEC-led oil output pact reached last year.
Today’s OPEC+ meeting comes in light of the continuous calls from the US and other oil-consuming countries to further boost oil production to tackle rising inflation. The group, however, opposed these pleas amid expectations of a decline in global demand.
OPEC+ sees global oil demand to stand at about 3.67 million bpd this year, a decrease of 480,000 bpd compared to its previous forecast.
OPEC Secretary-General Mohammad Barkindo had confirmed during Wednesday's trading that other oil producers were pushed into a painful adjustment period when Russian oil imports were cut. He also warned against lowered oil demand from China amid tightening COVID-19 restrictions.
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