OPEC may boost output by between 300,000-600,000 b/d under compromise deal

A number of OPEC countries are optimistic that a compromise agreement on boosting the cartel's output over the next few months can be reached.

According to Bloomberg, who cited officials from several member countries of the Organisation of Petroleum Exporting Countries, a compromise deal is under discussion to hike production by between 300,000 and 600,000 barrels a day.

Moscow had been pushing for an increase of up to 1.5m b/d, spread proportionally across all of the members of the so-called OPEC+ group of producing countries.

However, its proposal had reportedly run into opposition from Iran, Venezuela and Iraq.

Front month Brent crude oil futures bounced back on the report of a possible compromise deal, rising by 0.904% to $74.11 a barrel on the ICE.

On Friday, they had registered sharp falls on the back of reports about a possible understanding between Moscow and Riyadh.

Officials from the cartel were also said to be working to make OPEC+, which includes Russia, a permanent fixture.

That, some observers believed, might help to clinch the support of Iran and Venezuela for an increase in production.

Citing secondary sources, on 12 June OPEC pegged the combined output from its members - which does not include Russia - at 31.869m b/d.

"There is arguably a need for more OPEC oil. Any decision beyond 500kb/d will likely be subject to Iran and Venezuela's future trajectory. We would not bet on any mistake by Saudi Arabia to raise output beyond what is needed by the markets." said analysts at Kepler Cheuvreux.

OPEC ministers were set to next meet and decide on output on 21-21 June.