OPEC and non-OPEC countries are discussing the possibility of raising output by 500,000 barrels per day to counter falling supply from Iran due to U.S. sanctions, a source familiar with the discussions told Reuters.
The Organization of the Petroleum Exporting Countries, Russia and other allies agreed a deal in late 2016 to cut supply but after months of cutting by more than what the pact called for, they agreed in June to boost output by returning to 100 percent compliance. That equals roughly to an increase of 1 million bpd.
The current discussions are not finalised yet, but it would mean that oil producers would need to lower compliance to below 100 percent, the source said on Friday.
OPEC and its non-OPEC allies will gather in Algeria over the weekend to review compliance with existing production cuts.
Three OPEC and non-OPEC sources told Reuters on Friday latest data has shown that OPEC and its allies supplied less oil in August to world markets than they did in July mainly because of a drop in Iranian production.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)