While two OPEC plus sources said oil at a seven-year high close to US$90 a barrel might prompt the group to consider further steps, the vast majority of sources said no new decision was expected at the February 02, 2022 online meeting.
One Russian source told Reuters the country was concerned the price rally might revive a boom in US shale production.
"OPEC plus countries should be on high alert with this price level given the bullish forecasts for shale oil production in 2022," the source said.
The source added that high oil prices were also hurting profit margins of Russian refineries.
OPEC plus, which groups the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, has raised its output target each month since August by 400,000 barrels per day (bpd) as it unwinds record production cuts made in 2020.
Current plans would see OPEC plus do so again in March.
"We are very likely to go for another 400,000 barrels per day," one of the OPEC+ sources said. "There are no reasons against it."
OPEC plus has resisted pressure from the United States since last year to raise supplies more quickly.
Despite its increased targets, actual output from OPEC plus has not kept pace as some members struggle with capacity constraints, and this has been a factor underpinning prices.
OPEC plus missed its production target by 790,000 bpd in December 2021 as members such as Nigeria and Angola struggled to raise output, the International Energy Agency said.
Several banks and analysts including Morgan Stanley and JP Morgan, expect oil prices to top US$100/barrel later in the year 2022 amid tight OPEC plus spare capacity and strong demand.
Some OPEC plus sources believe that the recent price rally is driven more by geopolitical tensions than fundamentals.
"With Russian-Ukrainian tension one could expect that, but [it is] not a supply issue for sure," one of the sources said about prospects for US$100 oil.
