The anticipation for the OPEC meeting that’s scheduled for the 30th of November is high. As the rate of crude oil fluctuates like a ‘seesaw in the park’, traders are worried about what the outcome might be from the opec news that’s been emanating recently.
So here’s a recap of all the things you need to know before the penultimate decisions that will take place on the 30th of November, 2023.
A Brief About the Opec Meeting:
Saudi Arabia, Russia and several other members of the OPEC members have been scheduled to meet online on Thursday and this could make further changes to the agreement. It also limits supply into 2024, according to several analysts and OPEC+ sources.
Ever since the June meeting, there have been several issues concerning OPEC meeting negotiations.
Factors That Reached a Consensus in the Previous Opec Meeting:
Until now these are the criteria that have been decided upon by the countries.
The OPEC+ after a plethora of long negotiations in June, has extended oil output cuts of 3.66 million barrels per day or in hindsight about 5% concerning the daily global demand, surprisingly until the end of 2024.
In addition to this surprising news, Saudi Arabia has been making a 1 million bpd voluntary reduction in output until the end of December 2023. Along with them, Russia has also cut the oil export of 300,000 bpd until the end of 2023.
Talking about the target that has been set, the group aims to produce a combined 40.58 million bpd by the next year after adjusting the baseline and targets for several countries.
Concerning African members, their targets were reduced for 2024 bringing them in line with declining production levels. It also reviews United Araba Emirates from boosting production capacity to increase output in 2024.
What’s the consensus on Thursday?
As per the OPEC news sources, it is expected that there will be options for “collective further reductions” on Thursday. They had intimated that the organization had said that earlier this month, the group was set to consider additional cuts.
Additionally, the OPEC meeting could further revise 2024 targets for Nigeria, Angola and Congo as well after the reviews by outside analysts in June. Angola and Congo have been pumping below their 2024 targets due to the falling capacity whilst Nigeria has moved close to or surpassed its 2023 target in recent months according to the latest assessments.
In several situations, Saudi Arabia is also expected to extend its 1 million bpd voluntary cut to at least the first quarter of 2024.
That’s all for this as we anticipate the new shift in crude oil momentum with the OPEC+ meeting.
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Also Read: Market Jitters: US Macroeconomic Numbers ‘Pave Way’ For Economic Volatility?, Anticipating Shifts in Opec Crude Oil Prices – What to Expect?
Recommended Read: OPEC – An Organization You Need to Know About
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