OPEC+ Meeting Postponed to December 5 Amid Focus on Output Cuts
The OPEC+ alliance has rescheduled its upcoming meeting to December 5, shifting the format to a virtual gathering instead of an in-person event at its Vienna headquarters, according to media reports. Delegates have confirmed no logistical arrangements for a physical meeting, marking the third consecutive shift to online discussions.
The coalition of 23 nations, led by Saudi Arabia and Russia, has favored virtual meetings since the COVID-19 pandemic, with only two in-person gatherings held in Vienna since the onset of geopolitical tensions following Russia’s 2022 invasion of Ukraine.
Crude oil prices currently hover around $75 per barrel, a level below the fiscal needs of many OPEC members. Saudi Arabia, for example, requires oil prices closer to $100 per barrel to support its ambitious economic reforms, as estimated by the International Monetary Fund.
The meeting’s agenda is expected to focus on whether to extend or amend the current production adjustment plan. OPEC+ has already delayed restoring 2.2 million barrels per day of production twice, moving the timeline from October 2023 to January 2024. Decisions regarding this phased recovery will likely dominate the discussions.
Oil prices have seen a 15% decline since July, attributed to weak demand from China and increasing U.S. supplies. This slump adds to the challenges for OPEC+, which is managing three distinct production cut agreements: a formal cap of 39.725 million barrels per day, a voluntary reduction of 1.7 million bpd through 2025, and an additional 2.2 million bpd reduction scheduled to phase out in December.
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