OPEC+ postpones ministerial meeting to end of month
Shafaq News/ The Organization of Petroleum Exporting Countries (OPEC) has announced postponing the ministerial meeting of the OPEC+ bloc until the end of this month. The meeting, initially scheduled for Sunday in Vienna, Austria, has been rescheduled to November 30, according to Agence France-Presse.
The 13 OPEC members, led by Saudi Arabia, and their ten partners, led by Russia, were slated to decide on their next production target amid declining crude oil prices. Without explanation, the unexpected announcement of the postponement triggered a significant drop in oil prices, with Brent and West Texas Intermediate crude experiencing losses exceeding 4% around 14:00 GMT.
Anticipation had surrounded the meeting, as oil prices had been on a downward trend since the end of September, with Brent crude trading below $80. Concerns about global demand, particularly in China, the world's largest crude oil importer, contributed to market uncertainties. The post-Covid-19 recovery in China has been slower than anticipated, and conflicting indicators from Europe and the United States have added to the complexities.
OPEC+, comprising nine members, including Riyadh, had implemented production cuts in recent months to stabilize prices. However, this strategy has not yielded sustained price increases, leading to speculation about possible disagreements between key players, Saudi Arabia and Russia.
Saudi Energy Minister attributed the price drop to speculators, deeming it inconsistent with market fundamentals. Meanwhile, Russian Deputy Prime Minister Alexander Novak stated that current oil prices objectively reflect the situation and are sufficient, emphasizing that detailed discussions would occur at the rescheduled meeting.
