“OPEC+ is making progress in reaching an agreement to delay the resumption of oil production for another three months.”, — write: epravda.com.ua
OPEC+ is making progress in reaching an agreement to delay the resumption of oil production for another three months. Bloomberg writes about it. The three-month delay is the main proposal in those talks and has so far drawn no opposition, said the delegates, who asked not to be named because the discussions are private. The alliance is due to finalize its plans on Thursday. Last week, the group discussed delaying the sequential increase in supply, which is due to begin with an initial increase of 180,000 barrels per day in January. A looming glut is weighing on oil prices.Advertisement: Baghdad, Moscow and Astana have been holding off on imposing supply curbs, and talks ahead of the meeting focused on improving compliance and making further cuts to compensate for overproduction. The organization has been forced to delay the restart twice as slowing demand growth in China and increased supply from America weigh on oil prices. Brent crude oil futures have retreated by 17% since the beginning of July and are trading in London at around $73 per barrel. Even if OPEC+ postpones the hike planned for the first quarter, oil production will still rise. The United Arab Emirates has been granted the right to slowly increase output by 300,000 barrels per day through 2025 in recognition of recent investments in its capacity.Advertisement: Kazakhstan could also be challenged next year as it continues a massive expansion of the Tengiz oil field. Additional barrels could be another test of OPEC+’s ability to keep global markets in balance. We will remind: At the December meeting, OPEC+ will have limited opportunities to maneuver in its oil policy.
