OPEC said to be discussing output hike of up to 600,000 bpd

The Organization of Petroleum Exporting Countries (OPEC) members are discussing a compromise agreement that would lead to an increase in crude oil production of between 300,000 and 600,000 barrels per day (bpd) over the next few months, Bloomberg reported, citing unnamed people briefed on the talks.

Officials from a number of countries are optimistic that an agreement can be won for a relatively modest hike at this week’s meeting in Vienna, the people said.

Earlier, Iran and Venezuela had said that they will block a proposal to increase oil production when OPEC and its allies meet in Vienna on June 22.

Last week, Saudi Arabia was said to be considering an increase between 500,000 and 1 million barrels per day. Russia, meanwhile, has expressed wishes to raise output by 1.5 million barrels per day.

Meanwhile, Brent crude oil prices, which have remained under pressure in anticipation of higher supply increase from OPEC, reversed their early decline on Monday.

The benchmark grade was last trading up 1 percent at $74.19 per barrel (bbl), while US West Texas Intermediate (WTI) crude futures were at $64.77/bbl – down nearly 0.5 percent from the last closing.