The meeting to finalize output levels for 2024, scheduled by the Organisation for the Petroleum Exporting Countries (OPEC), has been postponed by four days to November 30. This delay is attributed to ongoing challenges related to output quotas for African members, particularly Angola and Nigeria, as reported by Bloomberg and Reuters.
Sources indicate that both Angola and Nigeria are requesting additional time to address concerns over the lower production targets imposed on them by more influential OPEC+ members.
Jorge Leon, Senior Vice President at Rystad Energy, commented, “This postponement indicates difficulties within the OPEC+ group to reach an agreement to cut production.”
The meeting, which includes major producers like Saudi Arabia, Russia, and other OPEC allies, is anticipated to discuss potential adjustments to an existing agreement that already limits supply through 2024, according to analysts and OPEC+ sources. The postponement raises speculation that there might be an increase in production from oil producers in the coming months, according to Dennis Kissler, Senior Vice President of trading at BOK Financial.
Kissler also noted that a surge in inventories could exert pressure on prices. To support prices, OPEC and its allies may need to not only extend but also increase production cuts, as suggested by John Evans of oil broker PVM. Earlier in the week, an OPEC technical panel invited a top financial market dealer to present an outlook for the oil market, which painted a bearish picture, as reported by Reuters.