OPEC meeting
Whenever there is an atmosphere of instability in the world. Crude oil prices are among the major factors that are considered to influence the global economy. Currently, there is a meeting of 22 strongmen of this sector on the crude oil market. Yes, on Sunday i.e. today a meeting of 22 countries of OPEC+ is going to be held, which may impact the price of crude oil in the future.
According to a Business Standard report, OPEC+ members are leaning towards another small production increase for December ahead of Sunday’s online meeting. Key members of the Saudi Arabia-led group are talking about an increase of about 1,37,000 barrels per day. Which is equal to the increase made in October and November. According to the representatives, who requested anonymity because the conversation was private.
There will be talk on oil export
Bloomberg had reported earlier this week that representatives saw this small increase as the main plan. A representative said that the discussion will continue on Sunday also. The video call is scheduled at 5 pm Vienna time. The Organization of the Petroleum Exporting Countries and its allies are hoping to regain the 1.65 million barrels per day of output that was halted two years ago after rapidly restarting another level of production earlier this year. Despite the long-awaited science of surplus production and warnings of more production next year, they are moving ahead.
The Paris-based International Energy Agency estimates that this quarter world supply may exceed demand by 3 million barrels per day, and next year it may increase much more, at least this can be said on paper. Yet, the organization’s actual production increase has been well below the announced quantity, as some members are compensating for past over-production and other members are struggling to produce more, resulting in limited market impact.