OPEC+ likely to stick to policy despite oil price rally

OPEC+ likely to stick to policy despite oil price rally

It has faced pressure from top consumers such as the US and India to pump more to help the economic recovery from the pandemic

OPEC logo in front of its headquarters in Vienna. — AP file

By Reuters Published: Wed 2 Feb 2022, 3:51 AM

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.

The group, which comprises of the Organisation of the Petroleum Exporting Countries and allies led by Russia and produces over 40 per cent 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 transition to greener fuels by consuming nations.

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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