Saudi Arabia is calling on its alliance allies to further reduce production, but not everyone agrees with this initiative, Bloomberg reports, citing delegates at the upcoming meeting.
Photo: By Flcelloguy, CC BY-SA 3.0
According to the agency, Riyadh has been cutting production by 1 million barrels per day since July and is now inviting other OPEC+ members to share this burden.
However, negotiations are difficult. Angola and Nigeria have expressed reluctance to reduce their production in 2024, so the coalition meeting was postponed to November 30.
Agency analysts expect that Riyadh and Moscow are likely to extend their current restrictions until 2024.
However, JPMorgan argues that OPEC+ may take more stringent reduction measures. Commerzbank and hedge fund manager Pierre Andurand warn of possible negative consequences of such a decision, believing that it could cause an additional fall in prices, reports oilcapital.ru.
Bloomberg suggests the union’s new restrictions will likely help stabilize the oil market. However, organizing additional quota reductions may be difficult. Iraq, Russia and Kazakhstan have recently exceeded their quotas, while African countries have lost significant production and cannot cut it further.
It is also unclear whether the UAE will increase its quotas by 200 thousand barrels per day – permission for such an increase in production was received by Abu Dhabi at the June OPEC+ meeting.
Reuters analysts believe that producers will maintain prices. A source in OPEC+ told the agency that they expect new cuts in production quotas, without specifying details.
Previously we reportedthat Saudi Arabia will create its own transport corridor together with India and Europe.