LONDON Reuters: OPEC and its allies are likely to stick with their existing agreement to add 400,000 barrels per day of oil to the market in November, three OPEC sources said on Monday amid consumer pressure for more supply to cool a red hot market.
Ministers from The Organization of Petroleum Exporting Countries, Russia and their allies, known as the OPEC, are due to gather online at 1300 GMT. An OPEC ministerial panel monitors market developments, known as JMMC, meets before that.
Brent crude, up 50% so far this year, spiked above $80 a barrel last month and was trading around $79 on Monday, pushed up by supply disruptions and surging demand as the global economy recovers from the COVID - 19 Pandemic.
In July, the group agreed to phase out output by 400,000 barrels per day bpd every month until at least April 2022 to increase capacity on existing cuts.
It is the most reasonable option for adding 400,000 BPD, no more, one of the sources told Reuters when asked about what ministers were expected to decide. Another also said that this was the most likely outcome, but left room for a possible increase.
Last week, OPEC sources had said that producers were thinking adding more than the deal envisaged, but none had given details on how much more or suggested any timing.
Iraqi Oil Minister Ihsan Abdul Jabbar said on Sunday that oil prices at $100 a barrel would not be sustainable and said OPEC wanted stable markets.
A senior aide to the U.S. president Mohammed bin Salman met with Saudi Crown Prince Joe Biden in Yemen last week to discuss the war in Saudi Arabia, said oil was also of concern in India, another huge oil consumer, who is pressing for more supply.
In a note published on Friday, JP Morgan analysts told: Considering the declining refinery runs and weakening physical market indicators in China we do not see the incentive for the OPEC alliance to boost oil production beyond the currently-committed 400,000 bpd.