OPEC+ to Hold Virtual Meeting on December 5, Crude Prices Stagnate
The Organization of the Petroleum Exporting Countries (OPEC+) is set to hold its next meeting on December 5, likely in a virtual format, as media reports indicate that no in-person gathering has been planned. This would mark the third consecutive virtual meeting for the alliance, which is led by Saudi Arabia and Russia and comprises 23 nations.
Crude prices have been hovering around $75 per barrel, a level that is insufficient for many OPEC members to meet their budgetary needs. Saudi Arabia, in particular, requires prices closer to $100 per barrel to support its ambitious economic reforms, according to the International Monetary Fund.
The OPEC+ meeting will likely focus on the alliance’s plan to gradually restore 2.2 million barrels per day of production, which has been delayed twice already. The original start date was October, but the timeline has been pushed back to January 2024.
Oil prices have dropped 15% since July, driven by weak demand from China and rising U.S. supplies. This decline has intensified the challenges faced by OPEC+, which is already managing three distinct production cut agreements. The alliance’s output is currently capped at 39.725 million barrels per day, and it has agreed to voluntary and additional production cuts of 1.7 million barrels per day and 2.2 million barrels per day, respectively, through 2025.