A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC) during the United Nations climate change conference COP29, in Baku, Azerbaijan November 13, 2024.
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The OPEC+ oil alliance postponed a meeting to decide the next steps of its crude production strategy to Dec. 5, two delegate sources told CNBC.
The sources did not want to be named given the sensitivity of discussions.
The coalition, made up of the Organization of the Petroleum Exporting Countries and its allies, was initially scheduled to meet on Dec. 1. They will now confer virtually next week.
The OPEC+ coalition is currently operating three sets of separate oil production cuts, in response to an uncertain demand outlook.
Under its formal output strategy, member nations are curtailing their combined production to 39.725 million barrels per day (bpd) into next year. Eight OPEC+ members are meanwhile voluntarily reducing by 1.7 million barrels per day throughout 2025, along with a second set of 2.2 million bpd of cuts that they are currently due to begin phasing out in December.
The OPEC Secretariat later in the session said that the meeting was rescheduled as several ministers of member nations will be attending the Dec. 1 Gulf Summit in Kuwait City, Kuwait.
It remains to be seen whether this second voluntary 2.2 million bpd production trim will be extended, after global oil prices once more came under pressure earlier this week, as the implementation of a cease-fire between Israel and Lebanon reduced the risk of production disruption in the oil-rich Middle Eastern region.
Iran, one of the largest producers of the OPEC contingent, has backed Lebanon’s Hezbollah, Yemeni Houthi and Palestinian Hamas militant groups throughout the year-long conflict with Israel, as well as exchanged missile fire with the Jewish nation. Markets have been watching whether a continuation or escalation of the conflict could ultimately lead to hostilities targeting Iran’s key oil infrastructure — the backbone of its sanctioned economy.
The Ice Brent contract with January expiry was trading at $72.68 per barrel at 07:39 a.m. London time, down 0.2% from the Wednesday settlement. Front-month January Nymex WTI futures were meanwhile trading at $68.58 per barrel, also down 0.2% from the Wednesday close price.
Adding to uncertainty is the January White House return of President-elect Donald Trump, who has previously championed a “drill, baby, drill” approach to bolstering U.S. oil production. Trump has also in the past deployed a hardline policy of enforcing sanctions against Iran because of its nuclear program, which could deter the few remaining buyers of Tehran’s crude — including China, the world’s largest crude importer.
