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Sources say that OPEC+ is expected to increase oil production on Sunday.

Sources said that eight OPEC+ member countries will likely approve a new oil production hike on Sunday. The group is still debating how much to increase output in September, amid fears about further disruptions of supply from Russia, and a seasonal decline in demand.

In recent months, the group has increased output due to low global stock levels and increasing demand. The Sunday meeting, which is scheduled to start at 11:00 GMT, coincides with new U.S. requests that India stop buying Russian crude oil, as Washington looks for ways to pressure Moscow to reach a peace agreement with Ukraine. New EU sanctions have also forced Indian refiners and state oil companies to stop buying Russian oil.

Three sources familiar with OPEC+ discussions said that OPEC+ may increase output by up to 548,000 barrels a day in September, similar to what they did in August.

Four sources said that discussions were underway on the volume and the increase could be smaller. OPEC+ started increasing output in April, with a 138,000 bpd increase. This was followed by increases of 411,000 bpd during May, June and Juli.

OPEC+ has been reducing production to support the oil market for many years. It reversed its course in order to regain market shares and after U.S. president Donald Trump demanded that OPEC pump even more oil.

Neither OPEC nor the Saudi authorities responded to our requests for comment.

If OPEC+ increases production by 548,000 bpd by September, they will have completely unwound their previous production cuts of 2.2 millions bpd, while allowing United Arab Emirates (UAE) to increase output by 300,00 bpd.

OPEC+ has a voluntary cut of 1.65 million bpd by eight members. A 2 million bpd reduction is also in place for all members. These cuts expire at the beginning of 2026.

Goldman Sachs, a U.S.-based bank, said that OPEC+ will not release any more oil after September. The bank cited the rising U.S. output of oil, the slowing down of global economic growth, and the buildup in oil stockpiles after the end driving season in September.

Amrita Sen said that it was presumptuous for anyone to start discussing the next phase of voluntary cuts of 1,66 million bpd, as the discussions had not even begun.

Benchmark Brent oil hit a five week high of $73.63 per barrel this past week due to fears of Russian oil supply disruptions, and also because of the fear that Moscow might retaliate with a shutdown of a major U.S. led oil pipeline coming from Kazakhstan.

Trump is usually interested in high oil prices. He has demanded that OPEC pump even more to lower the price of gasoline in the United States. (Editing by Kirsten Doovan and Hugh Lawson).

(source: Reuters)