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OPEC will meet before the scheduled meeting with its allies, barrel exceeds 80 USD

28 November 2023
Exploration & production

OPEC will hold an online meeting on Thursday at 10:00 GMT, ahead of the OPEC+ (Organization of the Petroleum Exporting Countries and Allies) meeting on the same day, where the level of crude oil production in 2024 will be discussed, sources familiar with the matter told Reuters.

The first meeting will focus on internal issues rather than the situation on the oil market, adds the source quoted by Agerpres.

The ministerial meeting of the countries of the OPEC+ alliance, initially scheduled to take place on November 26, in Vienna, has been rescheduled for November 30, OPEC announced without giving a reason for this postponement. At this meeting, the 13 OPEC member states, led by Saudi Arabia, and the ten partner countries, led by Russia, are expected to discuss new changes to an agreement that has already limited the global supply of crude oil.

On Tuesday, the price of a barrel of oil increased, as a strong storm led to a decrease in the production of crude oil in Kazakhstan. By 11:30 GMT, Brent crude was up $0.70, or 1%, at $80.77 a barrel, while West Texas Intermediate (WTI) crude futures were up $0.76, or 1%, to $75.62.

Both Brent and WTI crude have fallen recently, pressured by rising supplies and concerns about demand and a potential economic slowdown.

In order to support prices, OPEC and its allies will not only have to extend but also expand production cuts, assessed John Evans, broker at PVM.

However, even if OPEC+ countries will extend production cuts in the following year, the world oil market will register a slight surplus in 2024, the director of the oil markets division at the International Energy Agency previously estimated.

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