AFP, London

The Opec+ group of oil exporters are set to hammer out a new strategy at their meeting Wednesday, with all eyes on how they will react to soaring crude prices.

The 13 core members of Opec, led by Saudi Arabia, and the 10 further states in Opec+ -- chief among them Russia -- find themselves at a crossroads.

After the drastic output cuts they agreed to in spring 2020 in reaction to the plunge in demand caused by the coronavirus pandemic, the member states of the alliance are once again producing at pre-virus levels -- at least on paper.

In normal times they would perhaps have stopped at that but faced with runaway prices and pressure from Washington, this scenario is viewed as unlikely.

US President Joe Biden travelled to Saudi Arabia in mid-July despite his promise to make the country a “pariah” in the wake of the 2018 killing of journalist Jamal Khashoggi.

Part of the reason for the controversial trip was to convince Riyadh to continue loosening the production taps to stabilise the market and curb rampant inflation.

Wednesday’s meeting will reveal whether his efforts were successful.

“The US administration appears to be anticipating some good news but it’s hard to know whether that’s based on assurances during Biden’s trip or not,” Craig Erlam, analyst at Oanda, told AFP.

“It wouldn’t be a surprise to see the Saudis announce something that Biden could tout as a win to voters at home,” according to Stephen Innes of SPI Asset Management.

According to the London-based research institute Energy Aspects, Opec+ could adjust its current agreement in order to keep raising crude production volumes.

However, analysts warn against expecting any drastic increases.