Russia plans to propose that OPEC and its allies be allowed to return production to October 2016 levels, rolling back most but not all of their output cuts within three months, according to a person familiar with Moscow’s thinking.
All the nations would proportionally share out a 1.8 million barrel-a-day increase to their output limit starting as soon as July, the person said, asking not to be identified because the information isn’t public. The actual boost in supply to the market would be less than that because some states, notably Venezuela, Angola and Mexico, aren’t able to increase, the person said.
Russia and Saudi Arabia, leaders of the group of 24 producers, already suggested boosting output to stop prices going any higher and hurting oil demand. Moscow’s new proposal would go further, effectively ending the cuts for any country that has the ability to pump more crude. Such a move would have to be agreed by other members, several of whom have already come out in opposition.
The plan could be the first of many proposals and cou-nter-proposals from members of the group, subject to change during negotiations.