In an unexpected move, OPEC+ has pushed back its ministerial meeting originally slated for 26 November to 30 November. The delay, attributed to challenges in reaching a consensus on production levels and potential reductions, caught the market off guard and triggered a decline in oil prices.
Sources within OPEC+ revealed that the delay is linked to issues involving African countries. Following the June meeting, OPEC+ had stipulated that the 2024 output quotas for Angola, Nigeria, and Congo were contingent on external reviews.
The meeting on Sunday, which brought together the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, was anticipated to discuss modifications to an existing deal that already limits oil supply into 2024, as per analysts and OPEC+ insiders.
The unexpected delay has introduced uncertainty into financial markets, with analysts noting that the postponement indicates differing opinions among group participants. UBS analyst Giovanni Staunovo remarked, “Uncertainty is never good for financial markets, with markets now having to wait longer to get clarity on what OPEC+ does next year.”
Following the news of the delay, Brent crude experienced a decline of 49 cents per barrel, settling at $81.96. Although this marked a recovery from earlier losses of nearly 5%, the initial dip was linked to concerns involving African producers, who are among the smaller exporters within OPEC. Some investors and analysts, however, downplayed the significance of the matter causing the delay.
Brent crude has witnessed a decrease from its late-September levels near $98, influenced by increasing supplies and apprehensions regarding demand and a potential economic slowdown.
