Investing.com — The OPEC+ coalition will hold its next meeting on December 5, likely in a virtual format instead of at its headquarters in Vienna as initially planned, according to media reports.
Delegates have indicated that no invitations or logistical arrangements have been made for an in-person meeting, marking a third consecutive shift online.
The 23-nation alliance led by Saudi Arabia and Russia has increasingly opted for virtual sessions since the Covid-19 pandemic, with only two meetings in Vienna since Russia’s 2022 invasion of Ukraine affecting relations with European countries put pressure on.
Currently, the price of crude oil hovers around $75 per barrel, a level that is insufficient for many OPEC members to meet budget needs.
Saudi Arabia in particular needs prices closer to $100 a barrel to support its ambitious economic reforms, the International Monetary Fund said.
OPEC+ has already postponed its plan to gradually restore production to 2.2 million barrels per day twice, pushing the timeline from its original start in October to January 2024. The decision to expand or change this plan will likely dominate discussions, the reports said.
Oil prices have fallen 15% since July, driven by weak demand from China and rising US supply.
This decline increases the challenges facing the coalition, which is already managing three different production cut agreements: a formal cap limiting production to 39.725 million barrels per day, a voluntary reduction of 1.7 million barrels per day until 2025, and a additional reduction of 2.2 million barrels per day. the phase-out of which is expected to start in December.
