OPEC+ looks set to further hike oil output

Saudi Arabia, Russia and six other key members of the OPEC+ alliance are expected to agree to further hike oil production in a virtual meeting Sunday, as the group continues to seek greater market share.

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Analysts predict a slight output hike when the group of eight oil-producing countries known as the “Voluntary Eight” (V8) holds its online meeting.

Since April, the V8 group -- comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman -- has boosted production by around 2.7 million barrels per day (bpd) in total.

Emily Ashford, an energy analyst at Standard Chartered bank, expects a production hike of 137,000 bpd from December, which would mirror last month’s decision.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have sped up output increases at a pace very few had anticipated at the beginning of the year, following a long period of producers seeking to combat price erosion by implementing production cuts to make oil scarcer.

But faced with growing competition, particularly from US shale oil producers, gaining a larger share of the oil market has become the group’s main priority.

The group’s change in strategy “is working to a certain degree”, said Ole Hvalbye, commodities analyst at SEB bank.