This Sunday, OPEC+ members could renew production cuts for at least a quarter.
Members of the oil cartel OPEC+ They will try this Sunday at a meeting in Saudi Arabia maintain unity, in a context of great economic and geopolitical uncertainty and where a renewal of production cuts is expected for a quarter or even longer.
The Organization of Petroleum Exporting Countries (OPEC)leadered by Saudi Arabia, and his allies, led by Russia, who signed an alliance in 2016 called OPEC+ To increase their influence on the market, they were initially to hold their big biennial meeting at the cartel’s headquarters in Vienna. However, it was rescheduled online and eventually some members arrived in Riyadh, the capital of Saudi Arabia.
According to analysts consulted by AFP, the 22 ministers will maintain a cautious stance, renewing the production cuts already announced for at least a quarter or even until the end of the year. This strategy, undertaken at the end of 2022 due to the drop in oil prices, aims to reduce supply to increase prices.
OPEC maintains about 6 million barrels unexploited, both due to decisions made in the alliance and due to additional voluntary reductions by countries.
On the other hand, the group could be pushed to “revise the dues of some members,” he notes. Ipek Ozkardeskayamarket analyst at Swissquote Bank.
Meanwhile, the Minister of Energy of Kazakhstan, Almasadam Satkalievconfirmed his participation according to that country’s Interfax agency.
The financial press also cites a possible presence of the ministers of Iraq and Russia. The latter are among the countries that, such as Algeria and Oman, have agreed to turn off the tap at the request of Saudi Arabia, who wants to share the burden of cuts.
The modification of quotas is a source of discord in the alliance and causes heated debates and even unexpected departures. It was the case of Angola, who abandoned the OPEC at the end of 2023 dissatisfied with the production target that had been assigned.
Source: Ambito
