OPEC meets this weekend and Reuters sources say they will consider a 137K bpd oil output hike.OPEC had paused production hikes in the first quarter of the year after a series of boosts last year. The report says OPEC is preparing for peak summer demand and that the hike will come from the eight OPEC+ members -- Saudi Arabia, Russia, UAE, Kazakhstan, Kuwait, Algeria, Iraq and Oman.The same report says that Saudi Arabia has activated a plan for a short-term output and export surge in case of a US strike on Iran that disrupts flows.WTI crude is trading up $0.65 to $66.30 despite this report as the market focuses on US-Iran talks. I would estimate there is a $5-7 premium in the oil market around the potential for war. Talks resume today in Geneva.Trump yesterday told Congress that he would prefer to resolve differences with Tehran through diplomacy but also laid out his case for strikes. He claimed Iran was seeking to develop missiles that could hit the USA.“We are in negotiations with them. They want to make a deal, but we haven’t heard those secret words: ‘We will never have a nuclear weapon,'" he said. This article was written by Adam Button at investinglive.com.