Two sources in the OPEC Plus alliance said that although the alliance meeting scheduled for tomorrow, Sunday, to decide on oil production policy, will be held online, a number of alliance ministers intend to travel to the Saudi capital, Riyadh, to participate in it.
The OPEC Plus alliance includes the countries of the Organization of the Petroleum Exporting Countries (OPEC) and other countries, including Russia, and will decide its production policy for the rest of 2024 and perhaps next year.
Sources said that the coalition is expected to discuss a complex agreement that may extend the period of major oil production cuts until 2025.
Sources reported yesterday, Friday, that a number of OPEC Plus ministers had been invited to go to Riyadh.
OPEC Plus members are currently reducing production in total by 5.86 million barrels per day, or the equivalent of about 5.7% of global demand.
Some sources indicated that tomorrow’s meeting will include countries that are making voluntary cuts in supplies by 2.2 million barrels per day as part of the coalition’s comprehensive efforts aimed at curbing supplies, achieving balance in the market, and supporting crude prices.
These additional cuts are scheduled to expire this month.
The countries implementing a voluntary reduction are Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the UAE.
Production capacity of member countries
OPEC Plus has made a series of cuts since late 2022 amid an increase in production from non-member countries such as the United States and concerns about demand in light of rising interest rates.
Tomorrow’s meeting to determine production policy was originally scheduled to be held in person in Vienna at OPEC headquarters, but it was decided to hold it online last week.
A series of meetings is expected to begin at (09:00 GMT) tomorrow.
In addition to the production cuts, OPEC Plus is scheduled to discuss the production capacity of member countries, an issue that has long sparked controversy.
Estimating production capacities helps the OPEC+ alliance determine the basic production numbers upon which cuts are made.
Oil prices decline
Oil prices fell on Friday, recording a weekly loss as investors focused on the OPEC Plus meeting.
Brent crude futures for August delivery fell 0.6% to $81.37 per barrel, while futures contracts fell For US West Texas Intermediate crude Delivery next July: 1% to $77.18.
Brent crude fell 0.6% over the course of the week, while West Texas Intermediate crude lost 1%.
