VIENNA: Saudi Arabian sources have signalled that Opec may need to consider boosting oil output up to one million barrels per day at its meeting on Tuesday, Washington-based consultancy PFC Energy said in a report.
"PFC Energy understands that Saudi sources have been signalling that Opec need to consider a production increase of 500,000bpd to 1 million bpd at next week's ministerial meeting," PFC said in the report.
Saudi Arabia, the world's largest exporter, has not publicly stated its position ahead of the Opec.
Ministers and officials from other member countries had said there was no need for Opec to change output as supplies were sufficient and stocks in industrialised countries high.
"This last minute change of mind is first and foremost a consequence of the price increases seen this week and the steep backwardation that has emerged in the market," PFC said.
Consumer nations have called for months for the Opec to boost output to help dampen prices.
Opec would need to have cut its expectations for growth in supply from oil producers outside the group if it were to consider boosting output, PFC said.
"This trial balloon makes sense only if Opec has considerably revised downward its outlook for non-Opec supply, particularly its forecast for growth in the next two quarters. Opec, supplier of more than a third of the world's oil, had expected more output from competitors to help meet rising demand later this year.
Iraq's Oil Minister Hussain Al Shahristani that Opec will need to discuss whether to increase oil output "slightly" to rein in prices, although he also said that current supply was enough.
"Saudi Arabia will need to convince other delegations that such a move is necessary in order to ensure the longer-term health of world oil demand - a move many countries will be reluctant to take," PFC said.