“OPEC+ Meeting Delay Sends Oil Prices Tumbling”
Oil prices took a hit on Wednesday as the anticipated OPEC+ meeting scheduled for the weekend was delayed to November 30, resulting in a drop of about 4% for both West Texas Intermediate and Brent crude.
West Texas Intermediate saw a decline of 4.24% to $74.47 a barrel, while Brent crude, the international benchmark, fell 4.27% to $78.93 a barrel. Since their peak in September, oil prices have plummeted by more than 18%.
Reports have emerged of discord among OPEC+ member countries, with Saudi Arabia expressing dissatisfaction with other members’ oil production levels, according to Bloomberg. It has been revealed that OPEC’s de facto leader may consider reversing its production cut of 1 million barrels a day if other members do not contribute to supply reductions as well.
Furthermore, in June, OPEC+ had requested African nation members Angola, Congo, and Nigeria to take on lower production quotas in 2024 due to softening capacity. Bloomberg reports that any further production cuts from those already lower levels could prove difficult to adopt.
On the other hand, OPEC+ had given the United Arab Emirates permission to slightly ramp up production in January, a decision that the UAE may be hesitant to change. The ongoing dispute and uncertainty around production levels have contributed to the volatility in oil prices.
The fluctuations in prices were evident as global and US oil prices had spiked recently, following a week-long slump. The Financial Times reported that Saudi Arabia was in initial talks to prolong its production cuts into next year, prompting a reaction from sources who highlighted the pressure felt by leaders in the Gulf to respond to the situation.
The delay of the OPEC+ meeting and the ongoing disagreement among member countries have added further uncertainty to the future of oil prices and the global energy market.
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