US not expecting Saudi Arabia to immediately boost oil production

The United States is not expecting Saudi Arabia to immediately boost oil production and is eyeing the outcome of the next OPEC+ meeting on Aug. 3, a U.S. official told Reuters on Friday, lowering expectations before U.S. President Joe Biden visits.

Biden is set to land in Jeddah later on Friday on a trip during which energy supply and security cooperation are on the agenda.

Still, the U.S. could secure a commitment that OPEC will boost production in the months ahead in hopes that it will provide a signal to the market that supplies are coming if necessary.

Saudi Arabia, alongside the United Arab Emirates, holds the bulk of spare capacity within the OPEC+ group, an alliance between the Organization of Petroleum Exporting Countries (OPEC)and other exporters most notably Russia. Biden is expected to have direct meetings with Saudi and UAE heads of state during his trip.

Brent crude prices are trading at just under $100 a barrel, having hit a 14-year high of $139.13 in March, as investors weigh new COVID-19 lockdowns in top importer China and recession fears.