OPEC+ delays crucial oil output policy meeting amid schedule conflicts
- The OPEC+ alliance decided to postpone its next meeting on oil output policy to December 5 to avoid conflicts with a Gulf summit.
- OPEC+ is currently holding back 5.86 million barrels per day of output due to factors such as declining demand and rising non-member production.
- The delay in the meeting reflects ongoing challenges as OPEC+ navigates economic pressures and analyses its strategy for future oil production increases.
On Thursday, November 28, 2024, the OPEC+ alliance of oil-producing countries announced the postponement of its upcoming meeting regarding oil output policy from December 1 to December 5. The decision was made to prevent a conflict with a scheduled summit of Gulf Arab countries taking place in Kuwait City on December 1, which several OPEC+ ministers are set to attend. The shift in meeting dates follows extensive discussions among top OPEC+ ministers in preparation for the gathering. In recent discussions, OPEC+ members have reviewed their strategic approach to oil production amid fluctuating global demand and other economic factors. The alliance, which consists of OPEC and its allies led by Russia, is currently holding back 5.86 million barrels per day (bpd) of oil output, which equates to approximately 5.7% of global demand. Economic challenges, such as a slowdown in Chinese demand and increased production from non-member countries, create hurdles for OPEC+ as it plans a gradual unwinding of production cuts originally introduced to stabilize oil prices. The alliance planned to implement its first output increase since the cuts began, permitting an increase of 180,000 bpd set for December; however, this has now been postponed multiple times, with the first increase now pushed back until 2025. Saudi Energy Minister Prince Abdulaziz bin Salman had engaged in discussions with key officials from Russia and Kazakhstan to evaluate and adjust their strategies in light of these developments and external market pressures. The current situation underscores the complexities surrounding oil market dynamics and the necessity for OPEC+ to continue coordination among its members in the face of global economic changes. Investors and market analysts are watching closely, as the decisions made in the upcoming meeting on December 5 could have significant ramifications for oil prices and global market trends in the weeks and months following the discussions.