DUBAI/LONDON: Opec+ has delayed a ministerial meeting expected to discuss oil output cuts to November 30 from November 26, Opec said in a statement on Wednesday, a surprise development that sparked a further drop in oil prices.
Sunday’s meeting of the Organisation of the Petroleum Exporting Countries (Opec) and allies such as Russia, known as Opec+, had been expected to consider further changes to a deal that already limits supply into 2024, according to analysts and Opec+ sources.
The delay to the meeting into next week might be to allow more time for countries to discuss both compliance with existing output cuts and potential additional cuts, an Opec+ source said, declining to be named.
“Uncertainty is never good for financial markets, with markets now having to wait longer to get clarity what Opec+ does next year,” said UBS analyst Giovanni Staunovo. “The postponement of the meeting also shows there are some different views among the group participants.” Brent crude was last down almost $4 a barrel, or almost 5%, trading below $79.
Sunday’s meeting of the Organisation of the Petroleum Exporting Countries (Opec) and allies such as Russia, known as Opec+, had been expected to consider further changes to a deal that already limits supply into 2024, according to analysts and Opec+ sources.
The delay to the meeting into next week might be to allow more time for countries to discuss both compliance with existing output cuts and potential additional cuts, an Opec+ source said, declining to be named.
“Uncertainty is never good for financial markets, with markets now having to wait longer to get clarity what Opec+ does next year,” said UBS analyst Giovanni Staunovo. “The postponement of the meeting also shows there are some different views among the group participants.” Brent crude was last down almost $4 a barrel, or almost 5%, trading below $79.