One day before a crucial OPEC meeting which could determine if oil trades above $50 or back under $40 in the coming weeks, a panel of OPEC+ ministers failed to reach an agreement on whether to delay January’s oil-output increase, leaving the matter unresolved before tomorrow’s meeting.
According to Bloomberg – which cited an anonymous delegate – while most participants including Russian Deputy Prime Minister Alexander Novak in the informal online discussion on Sunday evening supported maintaining the production curbs at current levels into the first quarter, the United Arab Emirates and Kazakhstan were opposed. The opposition comes following public complaints from Iraq and Nigeria, which have also indicated they would like to see an end to the production cuts.
As a result, due to the two minor nations’ opposition, unless the agreement is revised this week OPEC+ will restart about 1.9 million barrels a day of halted output, potentially pushing the global market back into surplus and sending crude price tumbling after a cautious recovery pushed Brent back to $48/barrel, the highest since March…
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