Reuters today quoted four OPEC+ sources on Tuesday as saying that alliance negotiations on oil policy were difficult, making it possible to extend the current policy rather than increase production cuts to support the market.
OPEC+ alliance including OPEC plans to holdOPEC) and allies led by it Russia– An online meeting will be held next Thursday to determine production levels Oil 2024, according to a draft agenda seen by Reuters yesterday Monday.
Sources said the meeting was likely to be postponed again, with two sources saying additional cuts – a step the sources said would be discussed – had not been significantly discussed.
“Everyone is sticking to their guns,” a source explained.
The meeting, originally scheduled for last Sunday, was postponed, OPEC+ sources said, due to a dispute over African countries’ production levels, but other sources later said the alliance was close to reaching a settlement in that regard.
Brent crude oil prices were up 2.5% at $81.9 a barrel as of 17:22 GMT.
Oil prices were also supported by a weaker U.S. dollar, an expected drop in U.S. crude inventories and a drop in production after Kazakhstan’s largest field cut daily oil output by 56%.
Saudi Arabia, Russia and other members of OPEC+ have pledged to take a series of measures starting in late 2022 to reduce total oil production by about 5 million barrels per day, accounting for about 5% of global daily demand.
These include an additional voluntary production cut of 1 million barrels per day by Saudi Arabia, scheduled to end at the end of December next year, and a reduction of 300,000 barrels per day in Russian exports until the end of the year.
“Barring any negative surprises, the recent price decline may be seen as a buying opportunity, especially if more is agreed,” Tamas Varga of oil brokerage BVM said of the OPEC+ meeting. .”