① Delegates at the meeting revealed that OPEC+ is considering implementing new production reduction measures, and oil production in 2024 may be cut by as much as 1 million barrels per day; ② They stressed that the new production reduction measures cannot yet be guaranteed because this idea is facing significant resistance within OPEC.
Financial News Agency, November 30 (Editor Zhao Hao) According to the latest media reports, on Wednesday (November 29) local time, participants revealed that “OPEC+” composed of OPEC member countries and non-OPEC oil producers is considering implementing new production reduction measures. Oil production in 2024 may be cut by as much as 1 million barrels per day.
The report said that the latest decision may be announced during an online conference scheduled for Thursday (November 30), and if true, it may push up international crude oil prices.
Last Wednesday, OPEC announced that it would postpone the 187th OPEC Conference, the 51st Joint Ministerial Supervisory Committee (JMMC) meeting, and the 36th OPEC and Non-OPEC Oil Producer Ministerial Meeting (ONOMM), which were originally scheduled to be held on November 26, 2023, for 4 days until November 30. Two days later, the organization issued another statement announcing that the November 30 offline meeting would be changed to an online meeting.
Delegates stressed that new production reduction measures cannot yet be guaranteed because the idea is facing significant resistance within OPEC. They said that negotiations are continuing, and the most likely situation is to extend existing production restrictions.
In June of this year, OPEC+ announced at the 35th ONOMM that it would extend the production reduction agreement to 2024 and adjust the 2024 total crude oil production target to an average of 40.46 million barrels per day.
In order to achieve this goal, Saudi Arabia, the world's largest oil producer, has voluntarily reduced crude oil production by an additional 1 million barrels per day since July, and production has dropped to 9 million barrels per day.
Delegates said that Saudi Arabia supports the adoption of new production reduction measures at tomorrow's meeting, but in the organization, Nigeria and Angola, the two largest oil producers in Africa, have always been dissatisfied with the reduced quotas. They also said that the UAE, whose quotas have been raised, is unwilling to cut production further.
Delegates also mentioned that the conflict in the Middle East region was not mentioned in the OPEC dialogue. Despite geopolitical turmoil, the price of Brent crude oil, the international benchmark, has fallen by about 7% since October 7, and is now at 82 US dollars per barrel.
Also, according to a report by US investment bank Goldman Sachs, Saudi Arabia has begun a series of ambitious projects, including the construction of a giant new city in the desert. The bank expects Saudi Arabia to need oil prices higher than 88 US dollars per barrel to balance the budget.