Three sources in OPEC + told Reuters that the group is likely to keep its oil production policy unchanged when it meets on Wednesday, and will continue with a modest planned increase in its production.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia will meet. The group known as OPEC+On the first of September, to discuss a previously agreed increase of 400,000 barrels per day for several months to come.
The administration of US President Joe Biden urged OPEC and its allies to boost oil production to counter high gasoline prices, which the administration sees as threatening the global economic recovery.
On Monday, Brent fell 16 cents, or 0.2%, to $72.54 a barrel. Crude rose more than 11% last week in anticipation of disruption to oil production due to Hurricane Ida.
But OPEC + sources said that the recent increase in oil prices is temporary, mainly driven by the supply disruption in Mexico and the strong storm hitting the US Gulf Coast.
A source said: “Current oil prices around $70 are good. OPEC+ will probably continue as planned, with an increase of 400,000 barrels per day.”
Another source in OPEC + said that it was “highly likely” that the increase of 400,000 barrels per day would take place from September.
Kuwaiti Oil Minister Muhammad Al-Faris told Reuters on Sunday that OPEC + will discuss this week whether to continue the planned increase, reconsider it or stop the increase, adding that the economies of East Asian countries and China are still affected by Covid-19 and that caution should be exercised.
He told Kuwait News Agency (KUNA) later that Kuwait supports any decision taken by OPEC + ministers by consensus.