Saudi Arabia said to be considering plans to increase OPEC output

Saudi Arabia has put forward plans for increasing oil output to fellow OPEC members, including one with a two-step increase, Bloomberg reported, citing people who were briefed on the discussions.

The ideas, discussed informally among ministers and delegates ahead of OPEC’s meeting next week in Vienna, comes as Saudi Arabia tries to rally support for a production increase in the face of opposition from Iran, Venezuela and Iraq, the people said.

Russian President Vladimir Putin and Saudi Arabian Crown Prince Mohammed bin Salman are expected meet in Moscow today to discuss oil policy on the sidelines of the opening match of the Football World Cup.

Russia, the major non-OPEC participant in the output-cut agreement, has proposed a deal that would put about 1 million barrels a day into the market as quickly as producers could ramp up production, sources said.

Saudi Arabia is said to be considering different scenarios to raise production over the coming months by between 500,000 barrels a day and 1 million barrels a day.

One proposal aims at a single hike of just 500,000 barrels a day. Another idea would see an immediate increase of 500,000 barrels, followed by a similar rise in the fourth quarter, the report said.

The Kingdom has also shared ideas with increases of around 600,000 to 700,000 barrels a day, it added.

Oil ministers float ideas informally to gauge support. It is unclear if Saudi Arabia would move ahead with any of the plans it has suggested when OPEC meets next week.