Rowena Edwards, Ahmad Ghaddar, and Alex Lawler

LONDON, (Reuters) – OPEC+ is likely to stick with its May plans to increase its oil production, sources close to them said. This was despite a rise in prices caused by the Ukraine crisis, and consumer demands for more supplies.

OPEC+ has increased its monthly target to 400,000 barrels per month starting August 2021. Last year’s OPEC+ agreements call for a May rise of 432,000 bpd based upon higher baselines in Saudi Arabia, Russia and Iraq.

Numerous consuming nations, including the United States of America, are urging producers to boost their output as crude oil prices surged. This month’s peak was $139/barrel.

Major OPEC countries such as Saudi Arabia, the United Arab Emirates, and Qatar have resisted increasing their targets while OPEC+ which also includes Russia has stayed away from Ukraine.

According to some sources, Riyadh is seeking more Western support in the war against Yemen as well as security guarantees for an Iranian nuclear accord.

Six OPEC+ source told Reuters that the group will most likely keep to its May plan. One of the sources said Saudi Arabia’s reluctance at a larger hike was also a reflection of their support for Moscow.

According to a source, “The Saudis take care.” “They are not willing to raise oil production beyond the planned level in order to avoid showing they are against Russia.”

According to a Russian oil source, Russia does not anticipate OPEC+ raising its May increase and instead “hopes for OPEC+ partner’s support.”

Despite OPEC+ increasing its monthly output targets, some member countries have struggled with their capacity, which has led to lower prices.

According to the International Energy Agency, OPEC+ fell short of its February target by 1.1 Million barrels per daily (bpd). [IEA/M]