Will this have an impact on pump prices for motorists? It is too early to draw a conclusion. This tightening of the screw on oil extraction has lasted since 2022 and the price of gasoline at the pump now varies more depending on geopolitical vagaries, in particular the situation between Israel and Gaza, or the Iranian situation, now China or even the prospect of the American presidential election. The decision was taken on Sunday November 3 to continue to moderate the opening of the tap, indicated the Organization of Petroleum Exporting Countries ( OPEC) in a press release. Crude extraction is cut by around two million barrels per day.
**>> INFOGRAPHIC. Visualize the drop in fuel prices, to the lowest since 2022
**The objective is to support the prices of black gold which are at half mast especially for the petromonarchies, welfare states, which live on oil revenue. The price of a barrel is currently around 70 dollars (in the United States and in Europe), whereas it rose to more than 140 two years ago with the war in Ukraine. This represented a real financial windfall for producing countries. But today, with a sluggish global economy, the situation means that oil supply remains higher than demand and producing countries remain cautious.
Next step in December
The relevant ministers from OPEC member countries are due to meet in early December in Vienna (Austria). But with the announcement made on Sunday, November 3, the eight countries in question have already decided to reopen the floodgates only from the beginning of 2025. By 2025/2026, the challenge for OPEC+ will be to reopen the floodgates without flooding the market and sending prices soaring. A real headache hanging over the evolution of the international situation between now and then.
