Reuters quoted 4 sources in OPEC Plus – today, Tuesday – as saying that the coalition talks on oil policy are difficult, which makes it possible to extend the current policy, instead of increasing production cuts to support the market.
The OPEC Plus alliance – which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia – is scheduled to hold an online meeting next Thursday, to determine oil production levels in 2024, according to the draft agenda seen by Reuters on Monday.
The sources indicated the possibility of postponing the meeting again, and two sources said that the additional reduction – a step that the sources said would be discussed – was not discussed significantly.
One source explained, “Everyone is sticking to their positions.”
The meeting was initially scheduled to be held last Sunday before it was postponed, and sources in OPEC Plus said that this was due to a dispute over the production levels of African countries, but other sources then said that the alliance was close to reaching a settlement in this regard.
By 17:22 GMT, the price of Brent crude rose 2.5% to $81.9 per barrel.
Oil also received support from the weakness of the dollar, the expected decline in US crude inventories, and a decline in Kazakhstan’s production after the country’s largest oil fields reduced its daily oil production by 56%.
Saudi Arabia, Russia and other members of OPEC Plus have already pledged to reduce total oil production by about 5 million barrels per day, or approximately 5% of daily global demand, in a series of steps that began in late 2022.
This includes an additional voluntary reduction by Saudi Arabia of one million barrels per day, which is scheduled to end at the end of next December, and a reduction in Russian exports by 300,000 barrels per day that will continue until the end of the year.
“Barring any negative surprise, the recent decline in prices is likely to be seen as a buying opportunity, especially if more agreements are agreed upon,” said Tamas Varga of oil brokerage BVM, referring to the OPEC+ meeting. Reduction.
