2023-11-22 13:53:04
The meeting of the important Organization of the Petroleum Exporting Countries and its allies (collectively known as OPEC+) will be rescheduled from November 25th to November 26th to November 30th, causing crude oil prices to fall by more than $3 per barrel on Thursday (22nd). to below US$75 per barrel.
The West Texas Intermediate (WTI) January contract fell $3.27, or 4.2%, to $74.5 a barrel; the January Brent contract fell $3.32, or 4.03%, to $79.13 a barrel.
The OPEC Secretariat, which announced the news, did not disclose the reason for the delay.
It was unclear whether OPEC+ would hold a virtual or in-person meeting on Thursday, or whether the ministerial meeting at the OPEC secretariat headquarters in Vienna would be adjourned.
The new date for the OPEC+ meeting coincides with the first day of the Conference of the Parties climate summit (COP28) in Dubai, which will be a big deal for the United Arab Emirates, the world’s third-largest oil producer, as it hosts the meeting, and other Arab oil producers seeking a green transition. All are important events.
OPEC issued a statement saying that the energy ministers meeting was postponed to next Thursday (30th), but did not provide a reason. Bloomberg reported that the negotiations were in trouble because Saudi Arabia was not satisfied with the production numbers of other member countries.
Traders are increasingly expecting OPEC and its allies (OPEC+) to cut output further this week, as oil prices have fallen sharply from September highs amid concerns regarding record non-OPEC production and Chinese demand.
Since 2022, OPEC+ has removed 5.16 million barrels per day from the market, including a 3.66 barrel per day cut by the organization and 1.5 million barrels from voluntary production cuts by Saudi Arabia and Russia.
Even if production is significantly reduced,Brent crude oilIt has still fallen below $80 a barrel on several trading days in recent weeks.Goldman Sachs believes OPEC will use its pricing power toBrent crude oilPrices remain in the range of $80 to $100 per barrel.
Most analysts believe that OPEC+ is most likely to extend the current production cuts until 2024, but considering current market conditions, the possibility of further production cuts cannot be ruled out.
Israel and Hamas also agreed to a four-day ceasefire to facilitate the release of dozens of hostages in Gaza. Oil prices surged in October on concerns that war might spread across the Middle East, although traders increasingly view a regional conflict as unlikely.
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