Sources say that OPEC+ is unlikely to alter its output policy at the Monday meeting of the panel.
OPEC+ will not change its plans to gradually increase production when it meets Monday, delegates told the producer group. This is despite President Donald Trump's request to OPEC and Saudi Arabia, which is de facto leader, to lower prices.
The top ministers of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia or OPEC+ are scheduled to meet at 1300 GMT, on Monday. This is just days after Trump asked OPEC, Saudi Arabia and other oil-producing countries to pump more.
Four OPEC+ source said that the Joint Ministerial Monitoring Committee meeting on Monday was unlikely to recommend OPEC+ increasing output beyond what is already planned. Two other sources said that it is too early to tell. All sources refused to give their names.
Neither the Saudi government's communications office nor OPEC responded to requests for comments sent via email.
Kazakhstan, a member of OPEC+, announced on Wednesday that the group would discuss Trump's attempts to increase U.S. crude oil production, and will take a common stance on this matter.
Earlier this month, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman met with several of his OPEC+ colleagues. Sources said that the talks took place in Riyadh on the sidelines the Arab Energy Fund’s 50th Anniversary celebration, and not as part of a planned OPEC gathering.
Brent crude reached almost $83 per barrel on January 15 and settled at its highest level since August. This was due to concerns about the impact of U.S. sanction on Russia, announced in early January.
Analysts cited the possible negative economic impact that Trump's threatened duties against Canada and Mexico starting Saturday could have on prices.
OPEC+ member countries are currently holding back 5,85 million barrels of production per day, which is equivalent to around 5.7% of the global supply. This is part of a series steps that have been agreed upon since 2022 in order to support market.
OPEC+ has extended the latest round of cuts in December through to the first quarter 2025. This delayed a plan for OPEC+ to increase production until April. This was just the latest of several delays due to weak demand and increasing supply outside the group.
Calculations show that based on this plan, the United Arab Emirates' increase will start in April, with a 138,000 barrels per day increase each month. According to calculations, the increases will continue until September 2026.
One OPEC+ delegates and some analysts suggested that a delay would not be a good way to respond to Trump's request. Instead, they said keeping the plan of increasing production in April rather than putting it off again was a better answer.
John Evans, an oil broker at PVM, said that the group only needs to sign off on their intention to continue with the program of bringing barrels back in April.
A final decision on the April price hike will be made around early March, based on OPEC+’s past practice. Reporting by Ahmad Ghaddar; Writing by Alex Lawler, Editing by Simon Webb, and Jan Harvey; (Reporting and writing by Olesya Astakhova; Yousef Taba; Maha El Dahan, and Alex Lawler)
(source: Reuters)
