According to some representatives, major OPEC+ member countries have begun discussions to postpone the plan to restart oil production scheduled for January next year, possibly by several months.
Affected by this news, both oils have rebounded, rising more than 1% at one point.
These countries are skeptical about whether they can resume production as planned in January next year, and given the signs of global oversupply, they may need to delay further planned increases for several months.
On Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman met in Baghdad with Russian Deputy Prime Minister Alexander Novak and Iraqi Prime Minister Sudani, where they discussed oil market stability issues, according to a statement from the Iraqi Prime Minister's office. OPEC+ is scheduled to hold an online meeting on December 1.
Eight OPEC+ countries were supposed to start restoring 2.2 million barrels per day in production in phases starting from January next year, but this plan has been delayed since October due to low oil prices. The group has been limiting production since the end of 2022 in an attempt to support oil prices.
The International Energy Agency (IEA) predicts that even if OPEC+ completely cancels the production increase, the global oil market will face a new supply surplus next year. Citigroup and JPMorgan warned that oil prices are prepared to plunge from $73 per barrel to $60, and the drop may be even larger if OPEC+ chooses to restore production.
According to a survey conducted by foreign media last week, traders generally expect that production increases will be delayed, possibly until the second quarter of next year. Royal Bank of Canada Capital Markets stated in a report that production recovery may be postponed until the end of the second quarter of next year.
Article forwarded from: Jin Shi Data