OPEC+ to meet on Nov 30 after meeting postponement
OPEC+ is set to meet on November 30th, after the original meeting was postponed due to disagreements among its members.
The meeting’s main focus is on oil production quotas. Due to the decreasing prices of oil barrels since September, OPEC+ is expected to lower its members’ production quotas. However, it is uncertain how the cuts will be distributed among the members and how they will be implemented in 2024.
In recent months, nine countries have voluntarily reduced their oil production, including Saudi Arabia. Others did not comply with the prescribed cuts, like Russia, which needs the oil revenue to finance its war in Ukraine. Therefore, Saudi Arabia and others are dissatisfied with the organization and may protest additional cuts. On another hand, several African countries like Nigeria and Angola were unable to meet their target quotas due to underinvestment and security issues. In this regard, the UAE complained that it could not fully exploit its capacity, while other members underproduced.
If these disagreements continue during the meeting, global oil prices will likely suffer and continue to be unstable. To stabilize prices, the organization will likely continue its quota cut, despite members’ disagreement and until uncertainty in the Middle East becomes less prominent.
