OPEC+ could add about 2 million bpd of oil to market by December

OPEC+ is moving towards adding around 2 million barrels per day (bpd) of oil to the market between August and December, an OPEC+ source told Reuters as the group eases back on output curbs amid a recovering global economy and an oil price rally.

The source said monthly increases would amount to less than 0.5 million bpd. Another OPEC+ source said top OPEC producer Saudi Arabia and top non-OPEC producer Russia had a preliminary agreement for a deal on easing output curbs from August.

Oil prices extended their gains on the news, with benchmark Brent trading at $76 a barrel, near 2-1/2 year highs.

OPEC+ ministers meet later on Thursday to decide policy from August and could also consider extending their overall pact on supply restraint beyond April 2022, sources had said earlier.

Responding to oil demand destruction caused by the Covid-19 crisis, OPEC+ last year agreed to cut output by almost 10 million bpd from May 2020, phasing out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd.

The OPEC+ meeting is expected to start after 11:00 GMT, followed by a meeting of non-OPEC ministers later in the day.