OPEC+ Postpone Meeting Until December 5
OPEC+ oil alliance postponed its meeting until December 5 to determine the next steps of its crude production strategy. Organization of the Petroleum Exporting Countries and its allies planned to convene on December 1. Now, they will meet virtually the following week.
OPEC+ coalition is implementing three sets of separate oil production cuts because of the uncertain demand outlook.
Its official output strategy calls for member countries to reduce their total production to 39.725 million barrels per day (bpd) by the end of the following year. In the meantime, eight OPEC+ members have agreed to voluntarily reduce by 1–7 million barrels per day through 2025.
They must also start phasing out a second set of reductions of 2–2 million barrels daily in December.
Three distinct sets of oil production cuts are being implemented by the OPEC+ coalition in response to an uncertain demand outlook. Member countries are reducing their total production to 39.725 million barrels per day (bpd) through the end of the following year
They are scheduled to start phasing out in December along with a second set of 2–2 million barrels per day of cuts that, eight OPEC+ members are opting to reduce by 1–7 million barrels per day throughout 2025.
It is unclear if this second voluntary 2 million barrel per day production cut will be prolonged. The cease-fire between Israel and Lebanon decreased the likelihood of production disruption in the oil-rich Middle East, which put pressure on global oil prices.
Throughout the year-long conflict with Israel, Iran, one of the biggest producers of the OPEC contingent, has exchanged missile fire with the Jewish nation and supported militant groups Hezbollah in Lebanon, the Houthi in Yemen, and Hamas in Palestine.
Markets have been keeping an eye on whether the conflict will continue or intensify to the point where it targets Iran’s vital oil infrastructure, which forms the foundation of its sanctioned economy.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals