22.05.201821:38:00UTC+00OPEC May Rule to Loosen Oil Supply Curbs in June, Sources Say

Members of OPEC may decide to increase oil production as early as June due to concerns over Iranian and Venezuelan supply and after the Trump administration raised worries that the oil rally was going on for too long, according to OPEC and oil industry sources privy to the matter.

Gulf OPEC nations are heading the preliminary talks on when the exporting cartel can bolster oil production to temper the heat in the oil market after crude climbed above $80 per barrel in the previous week, and how many barrels each member can add, sources aid.

The OPEC and non-OPEC producers led by Russia have agreed to reduce production by around 1.8 million bpd until the end of 2018 to lower high global inventories, but the stockpile overhang has now declined close to OPEC's target.

A source said that all options are up for consideration, adding that a decision to increase output might be taken in June when OPEC next meets to decide on its production policy, but there is no certain figures yet by how much the group would need to loosen its oil production curbs.

Another source said that OPEC and its non-OPEC allies may choose to relax record high compliance with the supply curb deal. OPEC's compliance rate for the deal hit an unprecedented 166 percent in April, meaning it has lowered supply significantly above its target.

Adding more supply at the June meeting, according to a source, is one of the options.

Declining Venezuelan production due to an economic crisis has helped OPEC and its allies deliver a stronger cut than projected.

Saudi Energy Minister Khalid al-Falih is scheduled to meet his Russian and UAE counterparts, which holds the OPEC presidency in 2018, in St. Petersburg this week to talk about the issue, according to sources.