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Opec+ will likely stick to existing policies of moderate output increases on Wednesday, five sources from the producers’ group said even as it expects demand to rise to new peaks this year and as oil prices trade near their highest since 2014.
The group, which comprises of the Organization of the Petroleum Exporting Countries and allies led by Russia and produces over 40 per cent of global supply, has faced pressure from top consumers such as the United States and India to pump more to help the economic recovery from the pandemic.
But OPEC+ has refused to adhere to speedier increases arguing that the world is facing an energy shortage due to poorly calculated energy transitions to greener fuels by consuming nations.
Several OPEC members have struggled to pump even in line with their quotas due to under-investments of the past few years.
Five OPEC+ sources told Reuters on Tuesday they expected the ministers to agree to go ahead with a planned increase of 400,000 barrels per day in March, despite high oil prices.
“The issue (of speedier increases) did not come up and I doubt it will,” an OPEC+ source said, asked if an OPEC+ expert committee meeting had discussed an increase of above 400,000 bpd when it virtually met on Tuesday. A report prepared by the committee, known as the Joint Technical Committee (JTC), and seen by Reuters on Tuesday kept the forecast for world oil demand growth unchanged for 2022 at 4.2 million bpd.
(TDS)
