OPEC+ postpones meeting to decide oil production strategy to Dec. 5, sources say

• The coalition, made up of the Organization of the Petroleum Exporting Countries and its allies, was initially scheduled to meet on Dec. 1. They will now confer virtually next week.
• The OPEC+ coalition is currently operating three sets of separate oil production cuts, in response to an uncertain demand outlook

Two delegate sources informed CNBC that the OPEC+ oil alliance has postponed a meeting to determine the next stages in its crude production strategy until December 5.

Due to the sensitive nature of the discussions, the sources declined to provide their names

The coalition, which consisted of the Organization of the Petroleum Exporting Countries and its allies, was initially scheduled to convene on December 1. Next week, they will engage in a virtual conference.

In response to an uncertain demand outlook, the OPEC+ coalition is presently implementing three distinct sets of oil production cuts. Member nations are reducing their combined production to 39.725 million barrels per day (bpd) in accordance with their formal output strategy for the upcoming year. Meanwhile, eight members of OPEC+ are voluntarily reducing their production by 1.7 million barrels per day in 2025. Additionally, they are currently in the process of phasing out a second set of cuts, totaling 2.2 million barrels per day, which are scheduled to commence in December.

Later in the session, the OPEC Secretariat announced that the meeting had been rescheduled due to the fact that several ministers from member nations will be attending the Gulf Summit in Kuwait City, Kuwait on December 1.

Amrita Sen of Energy Aspects asserts that OPEC consistently pursues a long-term strategy.
Global oil prices were once again under pressure earlier this week, as the risk of production disruption in the oil-rich Middle Eastern region was reduced by the implementation of a cease-fire between Israel and Lebanon. It is uncertain whether this second voluntary 2.2 million bpd production trim will be extended.

Throughout the year-long conflict with Israel, Iran, one of the largest producers of the OPEC contingent, has supported the militant groups of Hezbollah in Lebanon, the Houthis in Yemen, and the Hamas in Palestine.

Additionally, Iran has exchanged missile fire with the Jewish nation. The markets have been monitoring the potential for hostilities to target Iran’s critical oil infrastructure, which is the foundation of its sanctioned economy, in the event of a continuation or escalation of the conflict.

At 7:39 a.m. London time, the Ice Brent contract with a January expiry was trading at $72.68 per barrel, a 0.2% decrease from the Wednesday settlement. In the meantime, the front-month January Nymex WTI futures were trading at $68.58 per barrel, which was also down 0.2% from the close on Wednesday.

The January White House return of President-elect Donald Trump, who has previously advocated for a “drill, baby, drill” strategy to increase U.S. energy production, has significantly increased uncertainty.

In the past, Trump has also implemented a hardline policy of enforcing sanctions against Iran due to its nuclear program. This policy has the potential to discourage the few remaining buyers of Tehran’s petroleum, including China, the world’s largest crude importer.