BLOOMBERG LP: OPEC members are discussing a compromise agreement...

BLOOMBERG LP:

OPEC members are discussing a compromise agreement that would see an oil production increase of between 300,000 and 600,000 barrels a day over the next few months, according to people briefed on the talks.

While Iran said on Sunday it’s opposed to any increase to current quotas, officials from a number of other countries are optimistic that an agreement can be won for a relatively modest hike at this week’s meeting in Vienna, the people said, asking not to be named discussing private conversations.

OPEC officials are also working on putting the cooperation between the cartel, Russia and other oil producers -- the so-called OPEC+ group currently comprising 24 nations -- on a permanent footing. That would be a major diplomatic breakthrough for Riyadh and Moscow after just two years of cooperation on oil policy.

The prospect of binding Russia, the world’s largest exporter after Saudi Arabia, more closely to OPEC might help persuade Iran and Venezuela, another skeptic about the need for an increase, to back higher production in the second half of the year.

An increase of 300,000 to 600,000 barrels a day -- above the current OPEC+ production of about 32 million barrels a day -- would be a real increase in production from those countries with spare capacity including Saudi Arabia, Russia and the United Arab Emirates. Some OPEC members back increasing output by the lower end of the 300,000 to 600,000 barrel a day range, one of the people said.

https://www.bloomberg.com/amp/news/...-to-600-000-b-d#click=https://t.co/kCCKDN6qQb

It will be 300k for Q3 only. Only way they will agree to do anything. Brent Short covering rally to US$80s starts next week.