The OPEC+ alliance has decided to postpone its online meeting on oil production, which was scheduled to be held next Sunday, to December 5, according to an official statement published on the OPEC website.
In the upcoming meeting, the alliance will discuss plans to gradually restore the halted oil supplies, starting with an increase of 180,000 barrels per day in January, according to what Bloomberg reported from delegates. They indicated that there are talks about the possibility of postponing this step for several months.
Reasons for postponing the OPEC+ meeting
OPEC said in the statement: "The 57th meeting of the Joint Ministerial Monitoring Committee and the 38th Ministerial Meeting of the Organization and Non-OPEC Countries, which were scheduled to be held on December 1, 2024, have been rescheduled to Thursday, December 5, 2024, due to the participation of a number of ministers in the 45th Gulf Summit to be held in the State of Kuwait."
OPEC and its partners have rescheduled meetings to allow more time to reach agreements, delegates told Bloomberg. Representatives from the alliance’s leaders, Saudi Arabia and Russia, visited OPEC+ members Iraq and Kazakhstan this week.
Options
The alliance faces a complex dilemma: either extend the cuts until 2025, or risk oversupply in global markets. “OPEC+ has two choices, both of which are bad,” Harry Tchilinguirian, head of oil research at Onyx Commodities, told Bloomberg.
Even extending the current restrictions until the end of the year will not prevent a major supply glut, according to the International Energy Agency.
Goldman Sachs expects any production increase to be delayed until April 2025, supporting its forecast for Brent crude at $76 a barrel next year.
