Iraq announces oil export hike ahead of Thursday Opec meeting

 
Francesca Washtell
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Kuwait Promises To Increase Oil Production In Case  Of War
A number of Opec members have said they will up their exports in the coming months (Source: Getty)

Iraq has said it will raise its oil exports ahead of a meeting of the Organization of Petroleum Exporting Countries (Opec) on Thursday.

It will supply five million barrels of extra crude to its partners in June, Reuters reported. Iran, Kuwait, Saudi Arabia and the United Arab Emirates are also set to raise their supplies in the third quarter.

Global oversupply is expected to be a central issue at the meeting, although a rally in the oil price last week has since dampened expectations the group will significantly rein in supplies.

The price of Brent crude nudged above $50 per barrel last Thursday, for the first time in 2016.

A decrease in US crude stocks and a drop in crude imports pushed the price higher towards the end of last week.

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US Energy Information Administration figures showed a decrease in crude stocks, by 4.2m barrels to 537.1m barrels, in the week to May 20. Crude oil imports fell 4.7 per cent to 7.3m barrels per day.

Recent supply disruptions in Canada, which has struggled with wildfires in its oil-producing region, Nigeria and elsewhere also drove the surge.

Prices had fallen back below $50 on Friday, as investors worried higher prices would exacerbate the supply glut. Brent Crude was trading hands for $49.41 a barrel on Monday afternoon.

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