OPEC+ meets virtually
OPEC+ will meet virtually today to discuss oil production.
The Organization of the Petroleum Exporting Countries (OPEC) plus is a 22-member organization that coordinates petroleum policies. It includes major oil producers such as Saudi Arabia, Venezuela, and Russia.
Although the virtual meeting was expected to take place on Sunday, it was postponed due to internal disagreements regarding policy on production for 2025. In September, eight members extended their voluntary cuts in production
While oil production cuts are expected in the short term due overproduction and lower demand, which forecasts a drop in prices, some members worry this could lead to an increase in market share for non-OPEC countries, such as the United States. Consequently, expect internal disagreements to further as some member-countries continue to overproduce despite their cut pledges. Members such as Russia, Iraq and the UAE are currently over their quota while countries like Nigeria, Sudan and Malaysia fulfill their commitments, showing divergent actions from the organization’s commitments and reducing the revenue of producer countries that comply. Expect cuts to last until the first quarter of 2025, focused mostly in Asia, as China’s import of oil is expected to peak in early 2025. In the long term, expect a total group cut of approximately 3.6 million barrels per day until the end of 2025.
