OPEC may ease oil supply curbs in June: report

OPEC may opt to raise oil output as early as June due to worries over Iranian and Venezuelan supply and after the US voiced concerns that the oil rally was going "too far," Reuters reported, citing OPEC and oil industry sources.

The Gulf OPEC countries are leading the initial talks on when the exporting group can boost oil production to cool the oil market after crude rose above $80 a barrel last week, and how many barrels each member can add, the sources told the news agency.

OPEC and non-OPEC producers led by Russia agreed to curb output by about 1.8 million barrels per day until the end of 2018 to reduce high global oil stocks. OPEC’s compliance with the deal reached 166 percent in April, meaning it has cut well above its target.

“All options are on the table,” a source told Reuters, adding that a decision to raise output might be taken in June when OPEC next meets to decide on its output policy.

However, there is no certain number yet by how much the group would need to ease its oil supply curbs, the source said.

“We are still studying the different scenarios,” a second source said, adding that even if OPEC decided to ease the output restrictions in June, it may take three to four months to put into effect.

Meanwhile, Saudi Energy Minister Khalid Al-Falih is set to meet his counterparts from Russia and the United Arab Emirates, which holds the OPEC presidency in 2018, in St. Petersburg this week to discuss this issue, sources said.