No discussion within OPEC+ to increase oil output – Novak

Russia’s Deputy Prime Minister Alexander Novak has addressed speculations about the possibility of increasing oil production within the OPEC+ coalition.

PHOTO: An oil pumpjack with the Russian flag in the background. Getty Images

The front-month ICE Brent contract gained $0.42/bbl to settle at $83.58/bbl on Wednesday after Novak confirmed that increasing oil output is currently not being discussed within the oil producers’ group.

“I consider it necessary to point out again that there is currently no discussion within OPEC+ on increasing oil output,” Novak said in a statement.

Oil prices came under pressure earlier this week, following a report suggesting that the OPEC+ group was analysing the possibility of increasing oil output.

Brent’s prices got a boost after the news was “categorically denied” by Novak, ANZ Bank’s senior commodity strategist Daniel Hynes said.

Meanwhile, market analysts from Goldman Sachs said they don’t expect OPEC+ to unwind voluntary output cuts in June, Reuters reported. The bank sees only a 37% chance of a production increase in the third quarter of this year.

By Aparupa Mazumder 

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