OPEC+ likely to stick to plans to raise oil output: Report

Topics OPEC output | oil and gas

(Bloomberg)

OPEC and its allies are likely to stick to plans to raise oil output by 400,000 barrels per day (bpd) at an OPEC+ meeting on Thursday, sources said, despite calls from the United States for extra supply to cool rising prices.

Top OPEC producer Saudi Arabia has already dismissed calls for more oil supplies from the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+. Kuwait and Iraq also support the current plans.

OPEC+ sources have said the United States has plenty of capacity to raise production itself if it wants to help the world speed up economic recovery.

Oil prices have surged this year to a three-year high above $86 a barrel as OPEC+ ramps up supplies gradually and demand recovers.

But producers are concerned about going too fas, fearing renewed setbacks in the battle against the COVID-19 pandemic.

"Despite the pressure from consumers, I think the decision of the OPEC+ meeting on Nov. 4 will most likely be the same increase of 400,000 bpd," an OPEC source said, adding that supporters of increased production growth are in the minority.

The virtual talks on Thursday start with a meeting of the Joint Ministerial Monitoring Committee, followed by the decision-making meeting of all OPEC+ ministers scheduled for 1400 GMT, another source said.

"I think no changes so far," said another OPEC+ delegate.

U.S. President Joe Biden on Saturday urged major G20 energy producing countries with spare capacity to boost production to ensure a stronger global economic recovery.

His statement is part of a broad effort by the White House to pressure OPEC and its allies to increase supply.

A Russian source also expected such calls would not sway the OPEC+ decision.

"We are supposed to stick to the current plan," the Russian source said.

 

(Reporting by OPEC team; Editing by David Goodman)


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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