US asks OPEC to raise output by 1 mln barrels a day: report

The US government has asked Saudi Arabia and a few other OPEC members to increase oil production by about 1 million barrels a day, Bloomberg reported, citing sources familiar with the matter.

The request came after US retail gasoline prices surged to their highest in more than three years, as supply continues to tighten driven by OPEC-led output cut deal.

President Trump’s decision to reimpose sanctions on Iran’s crude exports has also led to fears of rising supply crunch.

The US request was debated at a meeting of some Arab oil ministers over the weekend in Kuwait City, the sources said.

In a statement, published after Kuwait meeting, the participating countries said that they will “ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world.”

OPEC and non-member producers part of the output deal are scheduled to meet in Vienna later this month. The agenda includes a review of the agreement, which came into effect in January last year.

Brent crude futures declined after the report of US request. The benchmark grade was last trading down 1.3 percent at $74.34 per barrel.