LONDON (Reuters) – Three sources in OPEC+ Today, Monday, the Organization of the Petroleum Exporting Countries and its allies are likely to stick to their current agreement to add 400,000 barrels per day of oil to the market in November, as they study the possibility of increased infections with the Corona virus, and amid calls from consumers to reduce crude prices.
The ministers of the Organization of the Petroleum Exporting Countries, Russia and their allies, within the framework of the OPEC + group, are scheduled to meet remotely at 13.00 GMT. And before that, the OPEC + Joint Ministerial Monitoring Committee, which monitors market developments, will meet.
The price of the benchmark Brent crude, which has risen 50 percent since the beginning of the year, exceeded the level of $ 80 last month and was trading near those high levels today at about $ 79, driven by supply disruptions and increased demand with the global economy recovering from the Covid-19 pandemic.
Fourth wave of Corona
One of the sources told Reuters: “There are calls for more production increase by OPEC + … We are afraid of the fourth wave of Corona, no one wants to make any big moves.”
The group agreed in July to increase production by 400,000 barrels per day per month until at least April 2022 to gradually get rid of cuts of 5.8 million barrels per day currently being implemented by the group that reduced production in 2020 when the pandemic squandered demand.
One of the sources told “Reuters” in response to a question about what is expected to be decided by the ministers, “The most reasonable thing is to add 400,000 barrels per day, not more.” Another source also said this was the most likely outcome, but did not rule out a possible increase.
OPEC+ sources said last week that producers were considering adding more than the deal implied, but none provided details of the additional amount or any suggested timing.
The last OPEC + meeting decided the quantities for October.
Iraq’s 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.
Refinery operations decreased
In a note published on Friday, analysts from JPMorgan said, “Given lower refinery operations and weak market indicators in China, we see no incentive for the OPEC+ alliance to raise oil production beyond the 400,000 barrels per day currently committed.”
Morgan Stanley also said he expected OPEC+ to continue with its current deal.
The rise in oil prices reached its highest level in three years due to an even greater increase in gas prices, which jumped 300 percent and reached the equivalent of $ 200 a barrel due to lack of supplies and reduced production of other fuels.
Higher fuel and electricity prices are fueling inflationary pressures around the world and slowing the recovery.
.