DZWatch Exclusive: The OPEC+ alliance convened today to evaluate the current state of the global oil market. The meeting comes amid ongoing geopolitical concerns and projections of a potential supply surplus in the coming years.
Sources familiar with the discussions suggest that the alliance, led by Saudi Arabia and Russia, is likely to adhere to previously agreed-upon plans. These plans include a modest production increase in December, followed by a freeze on further increases for the first three months of the new year.
This stabilization of production levels would provide OPEC+ with additional time to assess the increasing geopolitical risks impacting the supply chains of member nations. Simultaneously, the alliance will be considering forecasts from international energy agencies, including predictions of a significant supply surplus anticipated by 2026.
Delegates involved in the discussions indicate that a primary focus of today’s meeting is a long-term review of the production capacities of member countries. This review is crucial for ensuring the alliance’s ability to respond effectively to future market fluctuations and maintain stability in the global oil supply.
The meeting, conducted virtually, is structured into several segments. It began with a semi-annual meeting of the core 12 OPEC members, focusing primarily on internal administrative matters. This was followed by a full OPEC+ meeting involving all 22 member nations, a session of the Joint Ministerial Monitoring Committee (JMMC), and a video conference for the eight countries participating in monthly production adjustments.
The discussions and decisions made during this meeting are expected to have a significant impact on global oil prices and the overall energy market in the months ahead. DZWatch will continue to provide updates on this developing story.
