Russia considering OPEC+ production hike proposal – Bloomberg

London (Quantum Commodity Intelligence) – Russia is considering proposing an OPEC+ oil-output increase at the group's July 1 meeting to close the supply deficit, according to a Bloomberg report Tuesday, citing Russian officials familiar with the matter.

The report said Russia anticipates the current global oil deficit will persist for the medium term, referencing two officials, but Moscow's final position going into the meeting was still being shaped.

Russia has generally pushed for higher output quotas since the start of the year, while Saudi Arabia has urged a more cautious stance by only releasing additional barrels when there is sufficient demand.

The sharp rise in oil prices since the last OPEC+ meeting is expected to lead to calls for  another round of production increases, following the gradual 1 million bpd addition during the May through July period.

However, the more cautious members are likely to point to the summer slowdown in Chinese imports and ongoing COVID-19 outbreaks, while refined products in most regions have generally not kept pace with crude oil

The International Energy Agency in its June reports urged OPEC+ to "open the taps," while OPEC itself expects strong demand growth in the second half of the year.

The 23-member OPEC+ producer group has up to 6 million barrels of spare capacity, of which Saudi Arabia controls around 40%.

The OPEC+ group will also be looking for further clarity on the potential lifting of US sanctions against Iran, with talks deadlocked following the latest round last weekend.