OPEC and its allies agreed at a meeting on Thursday to stick to plans to increase oil output by 400,000 barrels per day (BPD) beginning in December, despite the US call for additional supply to cool rising prices.
OPEC's leading producer
Saudi Arabia has already dismissed calls from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, for faster increases in oil supply, citing economic headwinds.
According to OPEC+ sources, the United States has plenty of capacity to increase production if it wants to help the world accelerate its economic recovery.
Oil prices have risen to a three-year high above $86 per barrel this year as demand recovers from COVID-19 restrictions and OPEC+ gradually increases supply.
Producers are wary of moving too quickly, fearing further setbacks in the fight against the pandemic.
According to Russian Deputy Prime Minister Alexander Novak, OPEC has already added 2 million BPD to global supply since August and will continue with its plan to add another 400,000 bpd per month in late 2021 and early 2022.
Explaining why OPEC+ has chosen not to add more barrels Novak said, "There are some signs of decreased oil demand in the European Union in October. Global oil demand is still under pressure from the Delta COVID variant."
On Saturday, US President Joe Biden urged major G20 energy-producing countries with spare capacity to increase output in order to ensure a stronger global economic recovery.
His statement is part of the White House's larger effort to put pressure on OPEC and its allies to increase supply.
The world's largest oil producer, the United States, which is not a member of OPEC+, saw its output fall sharply in 2020 as oil prices fell due to the coronavirus pandemic. Production has since recovered, but at a much slower rate than expected.