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Peter Davis

An writer at FOMOdrive

  • Nov 23, 2023
  • 2 min read

OPEC+ postponed meeting to November 30

On Wednesday, oil prices dropped by more than 4% due to the delay of the OPEC+ gathering, yet they later regained some of their losses.

The meeting has been moved from November 25-26 to Thursday, November 30.

Prices could be driven up if the alliance further reduces oil production.

Oil prices had been increasing for three days prior to the scheduled OPEC+ gathering this weekend, which was expected to bring about new strategies to bolster oil prices. Nevertheless, it was announced on Wednesday that the meeting had been delayed.

RBC reported that the OPEC+ Monitoring Committee (JMMC) and ministers of the alliance countries will meet on Thursday, November 30, after OPEC had confirmed that the meeting had been rescheduled from November 25-26.

OPEC+ may consider extending the voluntary cuts by Saudi Arabia and Russia, as well as potentially decreasing the quotas for the entire alliance. Despite this, the quotas for OPEC+ have stayed the same since the start of the year.

Goldman Sachs has estimated the likelihood of further production cuts to be 35%, while Citigroup has estimated it to be around 20%. This could result in an increase of approximately $5 per barrel in prices.

It is not impossible for OPEC+ to reduce supplies by an additional 1 million barrels per day. Delaying the OPEC+ meeting could potentially lead to a more significant supply cut being agreed upon.

At the end of 2022, OPEC+ members, including Saudi Arabia and Russia, agreed to market stabilization measures which included a reduction of their total oil production by 5 million barrels a day, or 5% of global demand.

The International Energy Agency (IEA) declared on Tuesday that, regardless of whether OPEC+ countries prolong their cuts into the following year, the global oil market will experience a slight supply surplus in 2024.

The Accounts Chamber reported on Wednesday that the proportion of oil and gas revenues in the Russian budget has dropped to its lowest point since 2007.

From January to September 2023, revenues from the sale of oil and gas decreased by 15% in annual terms, amounting to 5.58 trillion rubles, which is 28.3% of all revenues, a decrease of 1.5 times.

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