Published on 03/12/2024 at 1:46 p.m.
The group has reduced its production in 2022 to try to avoid too large a surplus on the market and thus support crude prices…
(Boursier.com) — Oil prices are rising on rumors of a delay of three additional months in the relaunch of OPEC production. According to cartel delegates cited by ‘Bloomberg’, the group held discussions last week about the postponement. A three-month extension was the main proposal emerging from these discussions and it has attracted no opposition so far. The alliance is due to finalize its plans in an online meeting scheduled for December 5.
In June, the Organization of the Petroleum Exporting Countries (OPEC) and its partners announced a roadmap to restart interrupted production of 2.2 million barrels per day, in monthly increments. The group reduced its production in 2022 to try to avoid too large a surplus on the market and thus support crude prices. But it was forced to delay the planned restart twice amid weak demand in China and increased supply from the Americas. Global markets will face another crude glut next year even if OPEC and its allies cancel their plans, the International Energy Agency warned recently.
The barrel of Brent from the North Sea (February maturity) fell 1.2% to 72.7 dollars per barrel in London while American light crude (January contract) gained 1.3% to 69 dollars on the Nymex.
