Published on 05/12/2024 at 1:47 p.m.
(Boursier.com) — As expected, OPEC+ will postpone the relaunch of its oil production by three months. This is the third time that the cartel has postponed the planned resumption of its black gold production against a backdrop of low demand in China and an increase in supply from the Americas. Despite this decision, global markets will face a new crude glut next year, the International Energy Agency recently warned. According to delegates cited by ‘Bloomberg’, the group led by Saudi Arabia and Russia will begin to re-increase its exploitation of black gold next April and the recovery will be carried out at a slower pace than expected. An official announcement should come in the coming hours.
In June, the Organization of the Petroleum Exporting Countries (OPEC) and its partners presented a roadmap to restart interrupted production of 2.2 million barrels per day, in monthly installments. The group had reduced its production in 2022 to try to avoid too large a surplus on the market and thus support crude prices.
Oil prices have fallen about 18% since the start of July, as traders ignore conflicts in the Middle East to focus on slowing activity in China. Citigroup and JPMorgan Chase & Co have predicted that the barrel will continue to slide towards $60 next year, even if OPEC+ continues to limit production. The barrel of Brent from the North Sea (February contract) is currently gaining 0.35% to 72.6 dollars per barrel in London while American light crude (January contract) is gaining 0.4% to 68.8 dollars on the Nymex.
