OPEC + considers options to bring more oil to market – sources
September 30 (Reuters) – OPEC + plans to go beyond its existing deal to increase production to 400,000 barrels per day (bpd) when it meets next week, sources said, at a time when oil prices are near their three-year high and consumers are pushing for more supplies.
The Russia-led Organization of the Petroleum Exporting Countries and its allies, known as OPEC +, is meeting on Monday to review production policy.
Four OPEC + sources said producers plan to add more than this envisaged deal, but none gave details on how much more or when supply will increase. Another source from OPEC + suggested that an increase of 800,000 bpd for one month was possible, with zero the following month.
The closest month an increase could occur is November as the last OPEC + meeting decided on October volumes. Read more
“We cannot rule out any option,” said one of the OPEC + sources. The idea that the oil market might need more oil than the planned existing deal was “one of the possible scenarios,” another of the sources said.
Sources told Reuters on Wednesday the most likely outcome was to stick with the existing plan. Read more
It is not immediately clear what prompted the change in tone, but it follows an OPEC + Joint Technical Committee (JTC) meeting that reviewed the market outlook and downsized a surplus of offer expected in 2022.
Discussions among members continue ahead of the virtual OPEC + meeting on October 4, with no guarantees that a further increase will be agreed.
Brent oil hit a three-year high above $ 80 a barrel on Tuesday, boosted by unplanned outages in the United States and a sharp recovery in global economic activity and energy demand as many countries emerging from the pandemic. On Thursday, prices were trading just below $ 79.
Rising prices for oil, gas, coal and electricity are fueling inflationary pressures around the world and slowing the recovery.
“Obviously, the price of oil is worrying,” White House press secretary Jen Psaki said on Thursday. She said high oil prices were on the agenda of National Security Advisor Jake Sullivan when he met Saudi Crown Prince Mohammed bin Salman this week.
Previously, the US government said it was in communication with OPEC and was looking to meet the cost of oil. Read more
India, the world’s third-largest importer and consumer of oil, signaled on Tuesday that a surge in crude prices would accelerate the transition to alternative energy sources. Read more
Energy ministers from OPEC members Iraq, Nigeria and the United Arab Emirates have said in recent weeks that the group sees no need to take extraordinary steps to change the existing deal. Read more
Report by the OPEC team, edited by David Evans and David Gregorio
Our Standards: The Thomson Reuters Trust Principles.