The Organisation for the Petroleum Exporting Countries has put forward the meeting to finalise output levels for 2024 by four days to Nov. 30 due to struggles over output quotas for African members, according to Bloomberg and Reuters.
The news platforms reported that Angola and Nigeria were seeking extra time due to lower targets imposed by more powerful members.
“This postponement indicates difficulties within the OPEC+ group to reach an agreement to cut production,” said Senior Vice President at Rystad Energy, Jorge Leon.
The meeting, which includes major producers Saudi Arabia, Russia and other allies and members of OPEC, is expected to consider further changes to a deal that already limits supply into 2024, according to analysts and OPEC+ sources.
The delay suggested more production could come online from oil producers in the coming months, said Senior Vice President of trading at BOK Financial, Dennis Kissler.
A rise in inventories also puts pressure on prices, he said.
John Evans of oil broker PVM noted that to support prices, OPEC and its allies would need to not only extend but increase cuts.
Earlier this week, an OPEC technical panel invited a top financial market dealer to give a presentation, seen by Reuters, which painted a bearish outlook for the oil market.
Contact: [email protected]
