LONDON, Sept 1, 2021 (BSS/AFP) - The world's leading oil producers are
expected to uphold a July deal to slowly boost output at a meeting on
Wednesday, despite US pressure to go further.

   OPEC members led by Saudi Arabia along with allies including Russia, known
collectively as OPEC+, decided in July to raise output by 400,000 barrels per
day (bpd) each month from August, in a deal thrashed out after weeks of
wrangling.

   The move is aimed at supporting a global economic recovery, which has been
battered by the coronavirus pandemic -- a crisis that sent oil demand
plummeting last year.

   But US national security adviser Jake Sullivan said last month that the
production boost agreed in July was "simply not enough" to fuel a global
recovery.

   However, analysts said Wednesday afternoon's videoconference between the
23 OPEC+ partners was likely to uphold the July decision.

   "It would be a surprise if they do anything (else) at the moment, despite
pressure from the White House, given current price levels, demand and
uncertain outlook," said Craig Erlam, a market analyst from trading firm
Oanda.

   - 'Demand fragility' -

   Helima Croft of RBC Capital Markets also said "staying the course is the
most likely outcome" though "some members have expressed concern about the
fragility of demand, most notably Kuwait".

   Kuwait Oil Minister Mohammed Al-Fares was quoted by the official Kuna
agency as saying on Sunday that "all options" were still on the table. "No
decision has been taken," he said.

   And Croft warned against "the perils of predicting" the outcomes of such
meetings.

   In a rare challenge to OPEC leader Saudi Arabia in July, the United Arab
Emirates only agreed to the deal after a compromise was reached to adjust its
output quotas next May, together with several other countries, meaning their
actual cuts will be less.

   Since May this year, OPEC+ members have raised oil output bit by bit with
the aim of eventually returning to pre-pandemic production levels, after
slashing them more than a year ago when the coronavirus pandemic crushed
demand.

   The grouping will "assess market developments" in December, OPEC said in
July. It also agreed to extend a deadline on capping output from April next
year to the end of 2022.

   Oil prices -- which had already been sliding owing to concerns about the
global economy -- plummeted in April 2020 as coronavirus spread around the
world and hit global consumption, transport and supply chains.

   OPEC+ then decided to withdraw 9.7 million bpd from the market and to
gradually restore supplies.

   Benchmark oil prices rebounded as a result to reach two-and-a-half-year
highs.

   The main international oil contracts have been trading around $70 per
barrel.

   But the market remains nervous with Covid infections and the Delta strain
on the rise and governments mulling future lockdowns.