The crude oil market remains volatile. And the upcoming meeting of OPEC+ is set to significantly impact next week’s futures trade and the overall trajectory of oil prices.
Originally scheduled for November 26, the meeting has since been moved to November 30. The OPEC secretariat, which made the announcement, did not disclose the reason behind the postponement.
When news of the rescheduling broke, prices of the Ice Brent contract, with January delivery, declined $3.40. It hit $79.05 per barrel as of 13:50 GMT. Meanwhile, the Nymex WTI contract, also set to expire in January, was at $74.40 per barrel. This reflected a $3.37 per barrel decrease.
By the week’s close, Brent crude settled at $80.58 while West Texas Intermediate (WTI) slipped to $75.54. It marked the fifth week of decline in the oil market.
Pivotal OPEC+ meeting
The upcoming OPEC+ meeting will gather members of the Organization of the Petroleum Exporting Countries and its allies. The meeting has been a focal point among market players and traders.
Expectations surround crucial decisions on potential production cuts for 2024, with indications of a possible consensus among OPEC+ members. In the policy-setting meeting, member states are expected to talk about output levels, especially for African producers such as Nigeria and Angola.
Additionally, Saudi Arabia could potentially continue its voluntary 1 million barrels per day (bpd) production cut.
The rescheduled OPEC+ meeting now coincides with the commencement of COP28 in the United Arab Emirates (UAE). This compounds the meeting’s significance for the host nation, UAE, which ranks as the third-largest OPEC producer. It is also particularly important for other Arab energy providers who have been navigating the green transition and reducing long-standing reliance on oil.
Read: Concerns over weak demand spark a decline in oil prices
Global influences
Apart from the OPEC+ meeting’s influence on oil prices, several other global factors are coming into play.
Recently, the market has experienced recent bearish trends tied to rising US oil inventories and global supply and sluggish demand concerns.
Simultaneously, China, the world’s largest importer of oil, could boost short-term oil trends when considering its recent data and interventions in the real estate sector. However, the long-term outlook remains alarming as experts forecast a decelerated oil demand growth in the first half of next year.
The substantial growth in non-OPEC production, notably led by Brazil’s Petrobras, is another factor that helps shape the oil market’s future.
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