NewsOPEC+ summit delayed: Disagreements over production quotas emerge

OPEC+ summit delayed: Disagreements over production quotas emerge

Prince Mohammed bin Salman
Prince Mohammed bin Salman
Images source: © Getty Images | Bloomberg
ed. PRC
3:36 PM EST, November 28, 2023

The OPEC+ alliance is contemplating larger reductions in oil production. The summit meeting has been deferred to the following Thursday due to a disagreement among certain producers about quotas, an OPEC+ source informed Reuters.

There's a significant chance that the Organization of Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+, will decide to prolong or even further reduce oil supply cuts for the upcoming year, according to Reuters.

The objective is to maintain oil prices, which on Monday stood slightly above 80 dollars a barrel. For reference, this price was nearly 98 dollars at the end of September.

A source affiliated with OPEC+ proposes that the possibility of a "further reduction" in oil production will be discussed this Thursday.

Meeting rescheduled

The OPEC+ meeting was initially scheduled for Sunday, November 26. However, it was postponed due to disagreements over the output levels of African producers, Reuters notes. A compromise on this issue is now within grasp for the group.

The OPEC and its associates are set to commence the meeting this Thursday at 7 a.m. Eastern Time.

Kuwait's announcement

Kuwait has announced its support for all resolutions made by OPEC, particularly those concerning market quotas and oil production levels. This news was conveyed by the Kuwaiti oil ministry via a social media platform.

Previously, Saudi Arabia, Russia, and other OPEC+ members had pledged to reduce oil production by approximately 4.4 million barrels per day, equivalent to cuts of about 5 percent of the daily global demand.

A voluntary production limit was separately imposed by Saudi Arabia, reducing extraction by 860,000 barrels per day. This constraint is due to expire at the end of December, along with Russian export cuts of 260,000 barrels per day.

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