An OPEC+ source told Reuters on Monday that the expanded cartel is considering bigger oil output cuts during its November 30 meeting.
The meeting was originally delayed for four days over a production quota dispute between OPEC leaders and African nations.
The source said he expected an option for a “collective further reduction” in oil production during the next meeting. The unnamed source’s comments echo similar comments made earlier in November suggesting that additional cuts would be considered.
OilPrice.com reports that last week, analysts increasingly chimed in to predict either an extension of the existing 1 million-barrel-per-day voluntary cuts or additional cuts to support prices which have fallen from highs of close to $100 per barrel in September to barely holding down $80 currently.
Reports also emerged that OPEC+ was making progress in talks with its African producers over their oil output quotas next year after Angola and Nigeria requested a higher production ceiling next year. Both countries took a cut in their quotas at the June 2023 meeting of OPEC+ as they had consistently failed to pump to their quotas.
At the same time, for next year, the UAE is set to increase exports of its flagship Murban crude grade after negotiating a higher production quota in the OPEC+ deal.
For years, the UAE has argued it should be allowed to pump more than its current OPEC+ quota as it is raising its production capacity. At the June meeting, the UAE won an upward revision of its quota that will take its production up by 200,000 barrels per day (bpd) to 3.219 million bpd for 2024.
Earlier on Monday, the OPEC General Secretariat slammed the International Energy Agency (IEA) for its “moment of truth” report on the oil and gas industry released last week. The IEA suggested that the world now has a stark choice between oil and gas and worsening climate change.
OPEC criticized the agency for vilifying the industry and ignoring cost and energy security issues.