OPEC+ Delays Meeting Amidst Global Oil Strategy Challenges

The OPEC+ alliance has postponed its meeting to discuss oil output policy from Dec. 1 to Dec. 5 due to a scheduling conflict with a Gulf Arab summit. The group, which includes Russia and Saudi Arabia, faces challenges from slowing global demand and rising external oil production.

The OPEC+ alliance, responsible for nearly half of the world's oil production, announced the delay of their upcoming meeting on output policy. Originally scheduled for December 1, the gathering has been moved to December 5 to avoid clashing with a Gulf Arab summit set for December 1 in Kuwait City.

Top officials have engaged in preliminary discussions regarding the potential delay to the planned increase in oil production slated for January. Saudi Energy Minister Prince Abdulaziz bin Salman has been actively involved, holding discussions with leaders from Russia and Kazakhstan during an official visit to Kazakhstan.

The postponement comes as OPEC+ navigates a complex energy landscape. Despite plans to gradually lift production cuts by 2025, the group contends with challenges such as a slowdown in global and Chinese demand and an increase in oil output beyond their coalition. This context underpins the group's cautious approach as they continue to withhold 5.86 million barrels per day, approximately 5.7% of global demand, from the market.

(With inputs from agencies.)