Oil Prices Slide As OPEC+ Postpones Output Meeting, Delays Decision On Supply Adjustments

Oil prices fell on Wednesday, as OPEC+ producers decided to delay their 187th meeting on output.

Crude, Brent, USO Down

No reason was cited for the schedule shift. Originally planned for the coming weekend (Nov. 25, 26), the gathering will instead be held on Thursday, Nov. 30. Crude oil futures were down 2.5% to $75.80 at the time of publication Wednesday.

The oil-tracking ETF, the United States Oil Fund, LP ETF USO was also trading lower, down 2.3% to $70.78 on Wednesday afternoon.

In recent months, both WTI and Brent crude oil benchmarks have seen a downward trend, dropping approximately 20% from their peak in September. This decline is attributed to increasing supply pressures, concerns about demand, and fears of an economic slowdown.

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187th OPEC+ Meeting Delayed

The meeting is expected to consider further changes to a deal that already limits supply into 2024, according to analysts and OPEC+ sources.

“Riyadh was widely expected to extend a unilateral 1 million barrel-a-day curb through the first quarter of next year to keep markets in balance. But the kingdom could reverse the measure if its counterparts don't contribute further to the supply reductions,” Pierre Andurand, oil trader and founder of Andurand Capital Management, said in an interview with Bloomberg.

Securing the cooperation of other OPEC+ members remains a key task at the meeting.

This is the 51st meeting of the JIMMC (Joint Ministerial Monitoring Committee) and the 36th OPEC and non-OPEC Ministerial Meeting. OPEC+ includes Saudi Arabia, Russia and other allies and members of the OPEC group of oil-producing countries.

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