OPEC+ Continues Talks with No Current Expectation of Meeting Delay, Sources Report
OPEC+ is actively engaged in discussions regarding its oil policy for the year 2024, and as of Wednesday, there is currently no indication of a delay to the scheduled meeting on Thursday, according to two sources within the producer group.
On the preceding day, sources had suggested the possibility of a further delay to the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allied nations, including Russia. The ongoing talks were described as challenging, with countries holding firm to their respective positions.
“The negotiations are ongoing, but no delay is expected,” one of the sources said.
The OPEC+ meeting, initially scheduled for November 26, has experienced a delay. Sources within OPEC+ initially attributed this delay to a disagreement over output quotas for African producers, but subsequent reports suggest that the group has largely resolved this issue.
Discussions surrounding African quotas occur in the context of the United Arab Emirates (UAE) being granted permission, as per OPEC+’s previous agreement in June, to increase its output in 2024.
As of 1300 GMT, global benchmark Brent crude oil has seen a 1.5% increase, reaching approximately $83 a barrel. Oil prices have declined from their late September levels of nearly $98, influenced by concerns about diminished economic growth and expectations of a supply surplus in 2024.
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Historically, OPEC+ talks on production quotas have posed challenges, including the June meeting that extended existing oil output cuts into 2024 and allowed an increase in output for the UAE due to its efforts to expand production capacity.
Key members of OPEC+, including Saudi Arabia and Russia, have committed to total oil output cuts of approximately 5 million barrels per day (bpd), equivalent to about 5% of daily global demand. This initiative, which began in late 2022, encompasses Saudi Arabia’s additional voluntary production cut of 1 million bpd set to expire at the end of December, and Russia’s export cut of 300,000 bpd until the year’s end.
