OPEC+ oil supply decision looms as US targets Iran shipments
Oil prices on the New York commodities exchange saw their strongest increase in over two weeks on Tuesday and continue to rise. Investors are awaiting a decision regarding the production plans of OPEC+ member countries, which will hold a virtual meeting on Thursday, brokers report.
8:44 AM EST, December 4, 2024
A barrel of West Texas Intermediate oil for January delivery costs $70.14 on the NYMEX in New York, marking an increase of 0.29%. Brent is priced at $73.85 per barrel, following a gain of 0.31%.
The meeting of OPEC+ countries to discuss the group's supply policy is approaching. Delegates to Thursday's meeting have previously indicated that discussions are ongoing about delaying larger oil supplies.
For now, OPEC+ has made progress toward an agreement aimed at further delaying the resumption of larger supplies by another three months.
From January 2025, an increase in oil supply from OPEC+ by 180,000 barrels per day was planned. The group has been limiting these supplies since the end of 2022 to maintain higher oil prices in global markets.
- A delay of three months is the main proposal in these talks and it hasn't drawn any opposition so far, according to anonymous delegates at the alliance meeting.
US sanctions on Iranian oil supplies
Meanwhile, the US has imposed additional sanctions on Iranian oil supplies targeting 35 entities and ships that play a key role in the "secret" fleet illegally transporting Iranian oil to foreign markets.
The US State Department stated that the new wave of sanctions targets tankers and ship management companies that are part of a network transporting Iranian oil abroad using false documentation, manipulating ship tracking systems, and constantly changing ship names and flags.
Entities managing the ships affected by US sanctions are based in the United Arab Emirates, China, India, Hong Kong, the Marshall Islands, and Panama, among others.
