LONDON: OPEC+ agreed to stick to existing plans for a moderate oil output rise when it meets on Wednesday, sources from the group said, despite pressure from top consumers to speed up production increases after crude prices hit seven-year highs.
The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+ that produces more than 40 percent of global oil supply, has faced calls from the United States, India and others to pump more oil as economies recover from the pandemic.
But OPEC+ has stuck to its recent targets of adding 400,000 barrels per day (bpd) each month and blamed surging oil prices on the failure of consuming nations to ensure adequate investment in fossil fuels as they shift to greener energy.
Several OPEC members have struggled to meet even those modest monthly output increases agreed by the group.
Five OPEC+ sources told Reuters on Tuesday the plan to raise output by 400,000 bpd in March was unlikely to change when the group meets online on Wednesday at 1300 GMT.
“No more than 400,000 bpd,” one OPEC+ source said on Wednesday, when asked if OPEC+ could discuss a higher figure.
Brent crude was trading above $89 a barrel on Wednesday, close to its seven-year high of $91.70 reached last week, amid tensions in Europe and the Middle East.
Goldman Sachs said there was a chance of a faster OPEC+ ramp up given the pace of the market’s recent rally.
A report prepared for the meeting by OPEC+ experts and seen by Reuters kept the forecast for world oil demand growth unchanged for 2022 at 4.2 million bpd.
It said it expected demand to rise to pre-pandemic levels in the second half of the year. Oil demand was slightly above 100 million bpd in 2019 but hammered by the pandemic in 2020.
