周四，OPEC+在会议上表示，Source: Wall Street See
OPEC+ stated at the meeting that they have agreed in principle to postpone the originally scheduled January production increase plan, and will gradually lift the oil production cuts starting from April 2025 until September 2026. WTI crude oil futures and Brent crude oil futures experienced a short-term plunge.
OPEC+ has called off the production increase plan for the third consecutive time, with member countries' disagreements escalating, casting a shadow over the oil market.
On Thursday, OPEC+ stated in the meeting that they have basically agreed to postpone the scheduled January production increase, gradually easing oil production cuts starting from April 2025 until September 2026.
Following the news, WTI crude oil futures and Brent crude oil futures experienced intraday short-term declines, now respectively at $68.58 per barrel and $72.35 per barrel.
Weak demand, oversupply, internal disputes... OPEC+ production increase plan faces obstacles again.
On Thursday, Igor Sechin, Chief Executive Officer of a Russian oil company, stated at the Verona Eurasian Economic Forum in the United Arab Emirates that the decisions made by this alliance have promoted the development of US shale oil producers and reduced the alliance's market share globally.
In June this year, OPEC+ announced a plan to gradually restore cuts made since 2022 by phasing in a total increase of 2.2 million barrels per day over a year. However, due to weak demand and global oil oversupply, recent oil prices have been under pressure, leading to significant obstacles for this plan. OPEC+ has been forced to postpone the production increase twice.
The International Energy Agency has stated that even if OPEC+ does not increase a barrel of crude oil, the global market will still face oversupply by 2025. Since early July, Brent crude oil futures have fallen by about 18%.
The UAE will still be able to increase production starting in January, gradually increasing by 0.3 million barrels per day each month from next year, regardless of whether further delays occur in the group's production limit measures.
Abu Dhabi is vigorously promoting production increases, which is closely related to its recent capacity expansions. However, the negotiations around production increases have been intense, with some African member countries seeing their production quotas reduced, eventually leading to Angola's withdrawal from OPEC+.
Last week, an official from Iran, one of the founding members of OPEC, wrote that the organization's global strategy has been proven to be 'self-deception', as the pursuit of high oil prices will only lead to countries rushing to increase production, resulting in endless competition.
Editor/jayedn
