LONDON- OPEC+ will likely stick to existing policies of moderate output increases on Wednesday, five sources from the producers’ group said even as it expects demand to rise to new peaks this year and as oil prices trade near their highest since 2014.
Oil prices rose on Wednesday towards last week’s seven-year highs after data showing a fall in US crude stocks underlined solid demand, but investors remained cautious ahead of an OPEC+ meeting due later in the day.
Brent crude climbed 36 cents, or 0.4 percent, to $89.52 a barrel, after easing 10 cents on Tuesday.
US West Texas Intermediate crude was up 38 cents, or 0.4 percent, at $88.58 a barrel, having gained 5 cents the previous day.
Tight global supplies and geopolitical tensions in Eastern Europe and the Middle East have boosted oil prices by more than 15 percent so far this year. On Friday, crude benchmarks hit their highest prices since October 2014, with Brent touching $91.70 and US crude hitting $88.84.
The group, which comprises of the Organization of the Petroleum Exporting Countries and allies led by Russia and produces over 40 percent of global supply, has faced pressure from top consumers such as the United States and India to pump more to help the economic recovery from the pandemic.
But OPEC+ has refused to adhere to speedier increases arguing that the world is facing an energy shortage due to poorly calculated energy transitions to greener fuels by consuming nations.
Several OPEC members have struggled to pump even in line with their quotas due to under-investments of the past few years.
Five OPEC+ sources told Reuters on Tuesday they expected the ministers to agree to go ahead with a planned increase of 400,000 barrels per day in March, despite high oil prices. – Reuters
