Opec+ may discuss 2027 baselines and agree July hike this week
Opec+ has agreed three layers of output cuts since 2022. (EPA Images pic)
LONDON : Opec+ may discuss issues around its baselines for 2027 production at its meeting today, two delegates from the group said, while separate talks due on Saturday could agree a further accelerated oil output hike for July.
The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines – production levels from which each member makes cuts or increases – for the last few years.
Baseline issues are controversial because some members such as the UAE and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines.
'The 22-member group is likely to ask Opec headquarters today to prepare a mechanism to help establish the baseline assessment for 2027,' one of the delegates said.
'That meeting is not expected to change output policy,' Opec+ sources said.
'On Saturday, the eight Opec+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels per day (bpd), the same as in May and June,' the delegates said.
Opec+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members.
The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire.
In April, eight Opec+ members began to unwind the group's most recent layer of output cuts, and for May and June made larger-than-expected hikes of 411,000 barrels per day.
Opec+ sources have told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 bpd output hike for July.
All sources declined to be identified by name due to the sensitivity of the matter.
Oil fell to a four-year low in April below US$60 per barrel after Opec+ said it was accelerating its output hike in May and as US President Donald Trump's tariffs raised concerns of global economic weakness.
Since then it has recovered to about US$65.
Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 bpd output hike for July, may unwind the remainder of the most recent cut by the end of October.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
2 hours ago
- Malay Mail
Would you like some ‘Turkish salmon'?: The Black Sea's new rose-coloured gold
ISTANBUL, June 21 — Sitting in his spacious office with a view of the Black Sea, Tayfun Denizer smiles: his rainbow trout, raised in submerged cages, have made him a wealthy man. 'Our exports surged from US$500,000 in 2017 to US$86 million last year, and this is just the beginning,' said Denizer, general manager of Polifish, one of the Black Sea's main producers of what is marketed as 'Turkish salmon'. In its infancy just a decade ago, production of trout — which in Turkey is almost exclusively farmed for export — has exploded in line with the global demand for salmon, despite criticism of the intensive aquaculture required to farm it. Last year, the country exported more than 78,000 tonnes of trout raised in its cooler northern Black Sea waters, a figure 16 times higher than in 2018. And it brought in almost US$498 million for Turkish producers, a number set to increase but is still far from the US$12.8 billion netted by Norwegian salmon and trout giants in the same year. Russia, which banned Norwegian salmon in 2014 after the West imposed sanctions over its annexation of Crimea, accounts for 74.1 per cent of 'Turkish salmon' exports, followed by Vietnam with 6.0 per cent, and then Belarus, Germany and Japan. 'Spectacular success' Stale Knudsen, an anthropologist at Norway's Bergen University and a specialist on Black Sea fishing, said Russia offered 'an available market that was easy to access, near Turkey'. For him, the 'spectacular success' of trout is also down to Turkey's experience and the technology used in farming sea bass and sea bream, a field in which it leads Europe. The production of trout in Turkey is almost exclusively farmed for export. — AFP pic Turkish producers have also benefitted from the country's large number of reservoirs where the fish are a raised for several months before being transferred to the Black Sea. There, the water temperature — which stays below 18 degrees Celsius (64.4 Fahrenheit) between October and June — allows the fish to reach 2.5 to 3.0 kilogrammes (5.5-6.6 pounds) by the time they are harvested. Last, but not least, is the price. 'Our 'salmon' is about 15 to 20 per cent cheaper than Norwegian salmon,' said Ismail Kobya, deputy general manager of Akerko, a sector heavyweight that mainly exports to Japan and Russia. 'The species may be different but in terms of taste, colour and flesh quality, our fish is superior to Norwegian salmon, according to our Japanese clients,' Kobya told AFP at Akerko's headquarters near the northeastern town of Trabzon, where a Turkish flag flies alongside those of Russia and Japan. Inside, a hundred or so employees in long blue waterproofs, green head coverings and rubber boots behead, gut, clean and debone trout that has an Aquaculture Stewardship Council (ASC) certification for responsible farming practises. Disease risks 'Over the last two years, many Turkish producers have moved to get those certifications,' said Knudsen, though he does not believe such labels are always a guarantee of sustainability. 'I think the rationale behind that is not only to become more sustainable, but is more importantly a strategy to try to enter the European markets... where the Norwegians have some kind of control,' he said. A Turkish salmon processing company in Trabzon, on the Black Sea. — AFP pic In a 2024 study, researchers from a Turkish public institute raised concerns that 'the rapid growth of the trout farming sector... led to an uncontrolled decline in the survival rate' of the fish. Pointing to the 'spread of diseases' and 'improper breeding management', the researchers found that nearly 70 percent of the trout were dying prematurely. Polifish, which also has an ASC certification, acknowledged a mortality rate of around 50 per cent of their fish stocks, predominantly in the reservoirs. 'When the fish are small, their immune systems aren't fully working,' said its deputy general manager Talha Altun. Akerko for its part claims to have 'reached a stage where we have almost no disease'. 'In our Black Sea cages, the mortality rate is lower than five percent, but these are farming operations and anything can happen,' Kobya said. 'Fake fish' Visible from the shore, the fish farms have attracted the wrath of local fishermen worried about the cages, which have a 50-metre (165-foot) diameter, being set up where they cast their nets to catch anchovy, mackerel and bonito. This aerial picture taken in Trabzon on June 11, 2025, shows workers harvesting Turkish salmons from their farming cages off the Vakifkebir shores in the Black Sea. — AFP pic Mustafa Kuru, head of a local fishermen's union, is a vocal opponent of a farming project that has been set up in his fishing zone just 70 kilometres (45 miles) from the Georgian border. 'The cages block the movement of the fish and what happens then? The fish start leaving the area,' he said, accusing the trout farmers of pumping chemicals into their 'fake fish'. He said a lack of fish stocks in the area had already forced two boats from his port to cast their nets much further afield — off the western coast of Africa. 'If the fish leave, our boats will end up going to rack and ruin in our ports,' he warned. — AFP
Malay Mail
15 hours ago
- Malay Mail
VinFast joins global push into UAE's expanding EV market
VinFast officially launched in the Middle East in October 2024. HANOI, VIETNAM - Media OutReach Newswire - 20 June 2025 - As the UAE moves steadily toward an electric future, Vietnam's VinFast is establishing its presence, aligning with government ambitions and shifting consumer electric this way comes to the streets of the UAE, as global EV brands are racing to capture the attention of local drivers. These include some from faraway places like Vietnam, as in the case of VinFast, which has been opening showrooms and hosting brand launches in the GCC easy to see why this is the case. Market projections show the UAE's electric vehicle market revenue will reach $1.95 billion by 2025[1]. The people also seem ready for a change: A 2024 survey found that 73% of UAE residents want to buy electric cars, with 50% of participants drawn by the promise of advanced technology, improved fuel efficiency (35%), and enhanced safety features[2]. Almost half view electric vehicles as the future of transportation, with 38% planning to purchase one soon. And for some early adopters, that future is already here, with a 23.6% increase in EV charging usage in Dubai by early 2025, according to Dubai's Electricity and Water Authority[3].The UAE government recognizes this momentum and acts accordingly. Dubai offers free parking for EV owners, provides complimentary Salik tags, and has been expanding charging infrastructure. One expert even suggested creating an EV-only lane on Sheikh Zayed Road if the government wants to achieve its goal of having half of the cars on its roads be electric by 2050[4].In that context, emerging brands are all vying for a piece of the UAE market, challenging traditional automakers with fresh design languages, high-tech features, and competitive pricing. The upstart VinFast exemplifies this new wave of car its home market of Vietnam, a country not historically associated with high-tech car manufacturing, VinFast has managed to build an EV supply chain with a 60% localization rate, aiming for 80% by brand has recently become Vietnam's best-selling car brand in 2024, thanks to its comprehensive EV ecosystem that includes widespread charging infrastructure and strong after-sales policies. That local appeal has become the launchpad for expansion across the U.S., Europe, and the Middle VF 8 model represents the brand's international debut, featuring premium design elements and advanced smart technology that align with UAE preferences for both sustainability and VF 8 offers competitive performance metrics alongside industry-leading warranty coverage of 10-year/200,000 km vehicle coverage, 10-year/unlimited mileage battery coverage, and comprehensive after-sales support. The vehicle's refined design language and cutting-edge technology package, including a full set of ADAS and 11 airbags, appeal to drivers who view their cars as extensions of their lifestyle global players will likely enter the UAE market, drawn by government support, consumer enthusiasm, and infrastructure development. The combination creates ideal conditions for brands willing to invest in long-term that context, new EV brands like VinFast, by diving in early, are actively shaping the future of driving in the UAE, proving that electric mobility can deliver both environmental benefits and exceptional #VinFast The issuer is solely responsible for the content of this announcement.
The Sun
16 hours ago
- The Sun
Oil prices fall as US delays decision on direct Iran involvement
SINGAPORE: Oil prices fell on Friday after the White House delayed a decision on U.S. involvement in the Israel-Iran conflict, but remained on course for a third consecutive weekly rise. Brent crude futures fell $2, or 2.5%, to $76.85 a barrel by 0648 GMT but still looked set to gain more than 3% on the week. U.S. West Texas Intermediate crude for July - which did not settle on Thursday as it was a U.S. holiday and expires on Friday - was down 14 cents, or 0.2%, to $75. The more liquid August contract was up 0.3%, or 19 cents, to $73.69. On Thursday prices jumped almost 3% after Israel bombed nuclear targets in Iran and Iran fired missiles and drones at Israel. The week-old war between Israel and Iran showed no signs of either side backing down. Iran is OPEC's third-largest producer. Brent futures trimmed previous session gains following the White House's comments that President Donald Trump would decide whether the U.S. will get involved in the Israel-Iran conflict in the next two weeks. 'Oil prices surged amid fears of increased U.S. involvement in Israel's conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation,' said Phil Flynn, analyst at The Price Futures Group. 'The 'two-week deadline' is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action,.. which would see the crude oil price remain elevated and potentially build on recent gains,' said Tony Sycamore, analyst at IG. Emril Jamil, oil research analyst at LSEG, said the 'unwavering determination' of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to increase output 'may have added jitters to the market'.
