OPEC Likely to Raise Oil Output by ‘Sizable’ Amount, JBC Says

 June 7 (Bloomberg) -- The Organization of Petroleum
Exporting Countries is likely to raise oil production by a
“sizable” amount to meet expected demand, according to Vienna-
based researcher JBC Energy GmbH.
    “With the OPEC meeting around the corner and a much higher
call on OPEC crude foreseen for the third quarter, a sizeable
production increase would appear to be on the cards,” David
Wech, JBC Energy’s head of research, said today in a note.
    The call on OPEC crude is estimated at 30.5 million barrels
a day in the third quarter, JBC said.
    “Any increases in OPEC production would likely be met by
medium- and heavy-sour grades, the very ones that have, or are
likely to see their prices hiked in July,” Wech said.
    “This would imply that refiners may have to dig deeper
into their pockets to meet the expected uptick in Q3 demand,
especially if other Middle Eastern producers follow suit.”