OPEC is considering going beyond the existing deal to increase production by 400,000 barrels per day (bpd) at next week's meeting, sources said, at a time when oil prices are close to a three-year high and consumers are pushing for more supplies.
The Organisation of Petroleum Exporting and Allied Countries, led by Russia, known as OPEC , meets on Monday to review production policy. The group agreed in July to increase production by 400,000 bpd to cut a cut of 5.8 million bpd.
Four OPEC sources said producers were considering adding more than the deal called for, but none gave details on how much more or when supply would increase. Another OPEC source suggested an increase of 800,000 bpd for one month and zero increase next month was possible.
The closest any increase could come is November, as October volumes were set at the last OPEC meeting.
"We can't rule out any option," an OPEC source said. The idea that the oil market might need more oil than the planned existing deal was "one possible scenario", another source said.
Sources told Reuters on Wednesday that the most likely outcome would be compliance with the existing plan.
It was not immediately clear what prompted the change in tone, but it came after a meeting of the Joint Technical Committee of OPEC (JTC), which reviewed the market outlook and reduced the size of the expected supply surplus in 2022.
Negotiations among members continue ahead of the virtual OPEC meeting on 4 October, with no guarantee that an additional increase will be agreed.
On Tuesday, as we see on Exness Broker, the price of Brent crude rose to a three-year high above $80 a barrel, helped by unplanned power cuts in the United States and a strong recovery in global economic activity and energy demand as many countries emerge from the pandemic. Prices traded just below $79 on Thursday.
Rising oil, gas, coal and electricity prices are adding to inflationary pressures around the world and slowing the recovery.
"Oil prices are clearly a concern," White House press secretary Jen Psaki said on Thursday. She said high oil prices were on National Security Adviser Jake Sullivan's agenda when he met with Saudi Crown Prince Mohammed bin Salman this week.
Earlier, the US government said it was in touch with OPEC and was considering how to lower the cost of oil.
India, the world's third-largest oil importer and consumer, said on Tuesday that a jump in crude oil prices would accelerate the transition to alternative energy sources.
Energy ministers from OPEC members Iraq, Nigeria and the United Arab Emirates said the group did not see the need to take extraordinary measures to change the existing agreement in recent weeks.