Three OPEC+ sources told Reuters that the group is scheduled to study whether to make an additional cut in oil supplies when it meets later this month, after prices fell about 20% since late September. The price of oil fell to about $80.6 per barrel of Brent crude from the highest level in 2023 recorded in September, near $98. Concerns about demand and a potential surplus next year have weighed on prices. Saudi Arabia, Russia and other members of “OPEC+” have already pledged to reduce overall oil production by 5.16 million barrels per day, or about 5% of daily global demand, in a series of steps that began in late 2022. The reduction includes 3.66 million barrels per day from “OPEC+”, In addition to a voluntary reduction from Saudi Arabia and Russia. An OPEC+ source said that the current restrictions may not be sufficient, and the group is likely to discuss the possibility of implementing further cuts at its meeting. Two other OPEC+ sources said that deeper cuts are likely to be discussed. One OPEC+ source said: “It is not good to see greater market volatility before the next meeting, while fundamentals remain generally strong.” “Ministers are likely to express some ideas on what further measures need to be taken to ensure a stable trend.” Ministers from OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, will meet on November 26. The group already has a plan, drawn up at its previous meeting in June, to reduce supplies by 3.66 million barrels per day until 2024. Prices fell further this week, even after OPEC said in a monthly report that oil market fundamentals remain strong despite “negative sentiment.” And its adherence to its relatively high expectations for oil demand growth for the year 2024.
