OPEC+ sees internal resistance to cuts — TASS
OPEC+ might propose further measures to limit oil production at upcoming group meetings through "verbal interventions", Russian state-owned media agency TASS reported citing sources.
PHOTO: Oil barrels in the colour of flags of OPEC+ members on a world political map background. Getty Images
The Organization of the Petroleum Exporting Countries and Allies (OPEC+) has already faced internal resistance to the voluntary cuts and production quotas set for 2024, prompting the price of front-month Brent to trail lower.
At its latest meeting in November 2023, members of the Vienna-headquartered body agreed to additional voluntary production cuts of 2.2 million b/d throughout the first quarter of 2024.
However, on 21 December, OPEC member Angola declared its departure from the coalition effective from the beginning of 2024, saying that the country’s interests do not align with OPEC any longer.
"Within OPEC+, opposition to new cuts is already strong and will only rise. As a result, we should now expect more verbal interventions," said Sergey Kondratyev, principal director of economic studies at the Institute for Energy and Finance.
Oil market analysts now believe that OPEC+ will adopt a "wait-and-see" policy before implementing further production cuts as long as it can regain market share.
The OPEC+ Joint Ministerial Monitoring Committee’s (JMMC) next meeting will be held virtually on 1 February, another TASS source said.
By Aparupa Mazumder
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