LONDON, Oct 4 — Opec and its allies are likely to stick to their existing agreement to add 400,000 barrels per day (bpd) of oil to the market in November, three Opec+ sources said today, despite consumer pressure for more supply to cool a red hot market.

Ministers from The Organisation of the Petroleum Exporting Countries, Russia and their allies, known as Opec+, are due to gather online at 1300 GMT. An Opec+ ministerial panel that monitors market developments, known as JMMC, meets before that.

Benchmark Brent crude, up 50 per cent so far this year, surged above US$80 (RM333) a barrel last month and was trading around US$79 today, supported by supply disruptions and surging demand as the global economy recovers from the Covid-19 pandemic.

Opec+ agreed in July to boost output by 400,000 bpd every month until at least April 2022 to phase out 5.8 million bpd of existing production cuts by the group, which slashed output in 2020 when the pandemic destroyed demand.

"The most reasonable is to add 400,000 bpd, no more,” one of the sources told Reuters when asked what ministers were expected to decide. Another also said this was the most likely outcome, but left room for a possible increase.

Last week, Opec+ sources had said producers were considering adding more than the deal envisaged, but none had given details on how much more or suggested any timing.

The last meeting of Opec+ ministers decided on October volumes.

Iraqi Oil Minister Ihsan Abdul Jabbar said yesterday that oil prices at US$100 a barrel would not be sustainable and said Opec wanted stable markets.

A senior aide to US President Joe Biden met Saudi Crown Prince Mohammed bin Salman in Saudi Arabia last week to discuss the war in Yemen but also said oil was "of concern”. India, another big oil consumer, has been pushing for more supply.

In a note published on Friday, JP Morgan analysts said: "Considering the declining refinery runs and weakening physical market indicators in China we do not see the incentive for the Opec+ alliance to boost oil production beyond the currently-committed 400,000 bpd.”

The oil price rally to a three-year high is exacerbated by an even bigger increase in gas prices, which have spiked 300 per cent and have come to trade close to an equivalent of US$200 per barrel due to supply shortages and low production of other fuels.

Rising fuel and power prices are feeding inflationary pressures worldwide and slowing the recovery. — Reuters