Saudi Arabia, Russia Propose 1.5 M b/d Output Increase: Ecuador Oil Minister

Saudi Arabia, Russia Propose 1.5 M b/d Output Increase: Ecuador Oil Minister

Saudi Arabia and Russia are reportedly seeking a 1.5 million barrel per day (b/d) increase in production from signee countries to the OPEC and non-OPEC agreement, the Ecuadorian oil minister stated on June 18, Reuters reported.

Carlos Perez said that this was the only proposal he has seen being put forward in the lead up to the Vienna OPEC meeting on June 22. He added that the proposed increase would be from the quota that members of the deal had previously agreed on.

On June 11, Iraqi oil minister Jabar al-Luaibi warned producers against being pressured to boost output levels, adding that unilateral decisions could collapse the supply cut agreement, Egypt Oil & Gas previously reported.

“Producers should deal wisely and with vision with the facts on the ground without being influenced by pressures and conflicting calls to pump more oil into the market, which could lead to undesirable results,” Luaibi said.

Both Saudi Arabia and its Gulf allies have suggested they may address the concerns of the US and China, and act to reduce prices by increasing production.

Russia has also stated that limiting production for too long could have the unintended consequence of greatly increasing growth in US shale.

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