Organisation of Petroleum Exporting Countries and allies (OPEC+) has delayed a ministerial meeting expected to discuss oil output cuts to November 30 from November 26 as producers struggled to agree on production levels and hence possible reductions, OPEC+ sources said, a surprise delay that sent oil prices sliding.
Reuters on Wednesday also reported that three OPEC+ sources said this was linked to African countries. OPEC+ said after its last meeting in June that the 2024 output quotas of Angola, Nigeria and Congo were conditional on reviews by outside analysts.
Sunday’s meeting of OPEC+ had been expected to consider further changes to a deal that already limits supply into 2024, according to analysts and OPEC+ sources.
“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.”
Reuters also reported that Brent crude settled down 49 cents a barrel at $81.96, recovering from steep losses earlier of nearly 5% after news that the dispute was linked to African producers, among the smaller exporters in OPEC. That led some investors and analysts to downplay the importance of the issue that caused the delay.
