London: Major oil-producing countries are expected to agree on Thursday to boost output in August to meet growing demand and limit recent price rises.

The 13 members of OPEC and 10 allies cut crude production after the pandemic sent oil prices crashing last year.

But the group has slightly increased production since early May as oil prices have recovered to levels last seen in October 2018.

India, the world's third-largest consumer of crude, has urged the OPEC+ group of top oil producers to allow prices to fall as inflationary pressure threatens to hobble economic recovery.

              **- A modest rise? -**

OPEC members led by Saudi Arabia conferred Thursday via a teleconference.

Later Thursday, they are to be joined by 10 allied oil producing countries led by Russia for the OPEC+ meeting.

That meeting was originally due to start at 1500 GMT but was pushed back to 1630 GMT, an OPEC statement said, to allow for some technical discussions to take place before it.

Opening the OPEC meeting, Angolan Oil Minister Diamantino Azevedo, who currently holds the group's presidency, said that although oil demand was expected to rebound strongly in the second half of the year, it was "no time to lower our guard".

"The coronavirus continues to take a painful toll, with thousands of lives still being lost every day," he said.

Azevedo added that the new Delta variant and recent surges in case numbers in numerous countries were "a grim reminder of the uncertainties that still loom over us".

Since 2016 the alliance has voluntarily reduced oil output to maintain prices, in particular since the coronavirus epidemic struck last year, demolishing global demand for oil.

Since April 2020, millions of barrels of crude oil have intentionally been left untapped, a prudent strategy that "has thus far been spot on", said Stephen Brennock, an analyst at PVM oil brokerage.

"It has managed to restore the oil balance without over-tightening the market," he added.

After plummeting in the early stages of the Covid-19 pandemic, oil prices have rebounded to around $75 a barrel for the two leading oil contracts, North Sea Brent and West Texas Intermediate (WTI).

In June, OPEC+ agreed to continue rises up until July adding up to 1.2 million barrels per day (bpd), to which will be added a further million bpd which had been voluntarily withdrawn by Saudi Arabia.

Oil traders expect the group to make another modest increase in output of around 500,000 barrels per day starting in August.

"The coalition was considering whether to continue reviving crude supplies gradually, as favoured by Saudi Arabia, or more vigorously as per Russia's request," said Fawad Razaqzada of Thinkmarkets.

OPEC+ members are already benefiting from the increase in prices, but if they rise too much, it will encourage competitors to tap sources that are not subject to the alliance's output quotas.