We will do the right thing at next week’s Opec meeting, Saudi energy minister says

It’s “inevitable” that Opec and its allies will agree to boost oil output gradually at their meeting in Vienna next week, Saudi Arabia’s Energy Minister said yesterday.

“As usual we will do the right thing,” Khalid Al Falih told reporters in Moscow.

“I think we’ll come to an agreement that satisfies most importantly the market.”

Russia and Saudi Arabia, leaders of the deal between Opec and other major oil producers to curb output and boost prices, discussed their next move in Moscow on Thursday, the same day as the two nations faced off in the opening game of the football World Cup.

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, along with Mr Al Falih and his Russian counterpart, were set to discuss how to boost oil production while maintaining their petro-alliance and overcoming opposition to an increase from other members of Opec.

Both nations have proposed plans for the so-called Opecplus group that would add as much as 1 million barrels per day, about 1 per cent of global output, although Riyadh prefers a smaller increase, according to sources.

“I think it will be a reasonable and moderate agreement,” Mr Al Falih said.

“It’s not going to be anything outlandish.”

Brent futures for August settlement traded at $76.49 a barrel on the London-based ICE Futures Europe exchange on Thursday, down 25 cents.

The contract advanced 86 cents on Wednesday.

The global benchmark crude traded at a $9.88 premium to WTI for the same month.

Saudi Arabia is mulling various different scenarios to raise supplies. One proposal envisages a single hike of just 500,000 bpd.