Saudi Arabia advocates cuts in oil production, but member partners in Opec+ oppose the proposal.

That’s what an anonymous delegate in the oil cartel Opec+ says Bloomberg News.

Saudi Arabia is reportedly asking others in the Opec+ coalition to reduce their oil production quotas in a bid to bolster global markets. Certain members oppose the proposal, reports the news site.

At the weekend, the Opec+ ministerial meeting was supposed to get off the ground. When the news came that it had been postponed due to internal disagreement about future cuts, the oil price fell 4 per cent. One of the disagreements is that the member states Angola and Nigeria have opposed cutting their production quotas for 2024. This is against Saudi’s proposal.

As a result of the disagreements, the meeting will be held online on Thursday.

At the time of writing, Brent oil trades for USD 80.23 a barrel, down 0.33 percent. In comparison, a barrel of North Sea oil traded for 81.05 dollars a barrel at the end of the stock exchange in Oslo on Friday.

Tracks fall towards 2024

Since July 1, Saudi Arabia has voluntarily cut 1 million barrels a day. This in tandem with Russia, which has cut 300,000 barrels daily. The Opec leader, Saudi Arabia, is now seeking support from the partner countries for further cuts from the entire Organization of Petroleum Exporting Countries, and partners (Opec+).

Market observers such as JPMorgan Chase & Co. has reported that Opec+ may announce sharp cuts in oil production at Thursday’s meeting. Commerzbank AG emphasizes that prices may fall significantly if they do not tighten further.

Over the past two months, the price of a barrel of North Sea oil has fallen by as much as 17 percent, due to increased oil supplies from countries outside Opec+, as well as signs that the war between Israel and Hamas will not escalate into a wider conflict in the Middle East.

Forecasters, including the International Energy Agency (IEA), predict that prices may fall further as the oil markets will be characterized by a surplus next year, reports Bloomberg.