The anticipated ministerial meeting of the OPEC+ alliance, originally slated for Sunday, Nov 26th in Vienna, has been rescheduled to Thursday, Nov 30th, as announced by the Vienna-based Organization of the Petroleum Exporting Countries (OPEC) in a statement on Wednesday.
The 13 OPEC members, led by Saudi Arabia, and their ten partners, led by Russia, were expected to make crucial decisions regarding their output policy against the backdrop of slumping crude prices.
The announcement of the rescheduled meeting caused global crude prices to experience a decline of about four percent. The world oil prices, having peaked in September, have seen a significant drop, with Brent currently trading below $80 per barrel. Traders express concerns over the potential slump in crude demand, fueled by uncertainties about the global economy. China’s post-Covid rebound is stuttering, and Europe and the United States are grappling with inflation challenges.
OPEC+ has been employing an output strategy where nine members, led by Riyadh, cut production in recent months to boost prices. However, this approach has failed to bring about a lasting recovery, raising questions about potential discord between top crude oil producers Saudi Arabia and Russia.
Saudi Arabian Energy Minister’s recent attribution of the oil price slide to speculators rather than weak demand suggests a likelihood of continuing the restrictive production policy, according to analyst Carsten Fritsch of Commerzbank. On the contrary, Russian Deputy Prime Minister Alexander Novak expressed on Wednesday that “current oil prices objectively reflect the current situation.”
Novak stated, “They are at a sufficient level and, therefore, the market is balanced. But we will discuss these issues in detail at the next meeting,” as quoted by Russian news agencies. The postponed meeting on Thursday is eagerly anticipated as industry observers and market participants await insights into the future direction of OPEC+ output policies and their potential impact on global crude prices.
