Three sources in OPEC+ told Reuters that the alliance of major oil producers is not currently discussing stopping the increase in crude production, despite the move by the United States and other countries. Other consumables to get from emergency reserves.
The United States and a few other countries agreed to pull out of reserves after attempts to get OPEC+ to pump more crude oil failed, while a jump in US gasoline prices increased pressure on President Joe Biden amid high inflation and a decline in its popularity.
OPEC+ says the world will soon face new oversupply despite the oil price soaring to its highest level since 2014 above $85 a barrel.
OPEC+ will meet next week to discuss the balance between supply and demand in the oil markets.
The group is adding 400,000 barrels per day to its supply every month to end the record production cuts in place since last year, currently rising to 3.8 million barrels per day.
For its part, the International Energy Agency called on “OPEC+” to take steps to lower oil prices.
Two sources added that OPEC+ will hold a meeting of the Joint Ministerial Monitoring Committee on November 30.
The meeting of the Joint Technical Committee is scheduled for 29 November.
On November 4, OPEC and its allies decided to stick to plans to increase oil production by 400,000 barrels per day from December.
The incomes of all oil producers fell with the onset of the COVID-19 pandemic, and as demand recovered in the global economy, they were able to rebuild their balance sheets.
The reins in OPEC Plus stocks boosted a rally that pushed the global benchmark, Brent oil, to its three-year high of $86.70.
OPEC+ sources said the United States has a strong ability to increase production on its own if it sees the global economy in need of more energy.
After the Nov. 4 meeting, Saudi Energy Minister Prince Abdulaziz bin Salman said producers are concerned about acting too quickly for fear of new setbacks in the fight against the pandemic and the pace of economic recovery.
He said oil inventories will see a “massive” rise in late 2021 and early 2022 due to the slowdown in consumption.
For his part, UAE Energy and Infrastructure Minister Suhail Al Mazrouei said: “We expect an oil surplus in the first quarter of next year.
Russian Deputy Prime Minister Alexander Novak said OPEC has already added 2 million barrels per day to global inventories since August, and will continue its plan to add another 400,000 barrels per month by the end of 2021 and the early months of 2022.
Novak explains why OPEC Plus has chosen not to add more production: “There are some indications of lower demand for oil in the European Union in October. Global demand for oil remains under pressure due to the mutated delta strain of Covid.”