Ahead of the Organization of Petroleum Exporting Countries’ meeting in “OPEC” next Monday, sources say that the bloc will keep oil production quotas as they are or reduce production next month to support the decline in prices.
-
OPEC countries will meet next Monday to decide whether to keep production as it is or reduce it
Three sources in “OPEC +” said that the bloc is likely to keep oil production quotas, unchanged in October, during a meeting for them next Monday, but some sources did not rule out reducing production, to support prices that fell from very high levels. This year.
And on Thursday, a document revealed that The joint technical committee of “OPEC +” It expects the deficit in the oil market to widen to 1.8 million barrels per day, in the fourth quarter of 2023.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, are meeting in what is known as “OPEC”, at a time when demand is facing headwinds, and supplies may be boosted by the return of Iranian crude to the market, if Tehran concludes an agreement with world powers.
Brent crude, the benchmark, fell to around $95 a barrel from $120 in June, amid fears of an economic slowdown and recession in the West.
Iran is expected to add 1 million barrels per day to supplies, or 1% of global demand, if sanctions are eased.
Saudi Arabia, the largest producer in the “OPEC”, indicated in August “the possibility of reducing production to achieve balance in the market.”
Data from the physical market indicates that supply is still tight, with many OPEC countries producing less than their targets, while new Western sanctions threaten Russian exports.
Russia reiterated on Friday that it would stop supplying oil to countries that support the idea of setting a price ceiling for its energy supplies amid the Ukraine war.
Three other OPEC+ sources said the September 5th meeting was unlikely to cut production in October, citing factors such as tight supply and the political reaction to such a move at a time when energy prices are rising.
But several sources in “OPEC +” said that the outcome appears to be uncertain, and that ministers may consult during this weekend.
At its previous meeting, “OPEC +” agreed to increase the target level of production by 100,000 barrels per day for the month of September, following Standard discounts canceled It amounted to regarding 10 million barrels per day, which it had agreed to in 2020, to help counter the impact of the Corona pandemic.