OPEC+ Heavyweights Discuss Oil Market Ahead of Key Meeting
Top officials from the three biggest producers in the OPEC+ alliance – Saudi Arabia, Russia, and Iraq – met on Tuesday to discuss the state of the global oil market, days before the group is set to meet on December 1 to decide how to proceed with the production cuts.
Iraq’s Prime Minister Mohammed S. Al-Sudani held on Tuesday a joint meeting with Russian Deputy Prime Minister Alexander Novak and Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman Al Saud, the Iraqi Prime Minister Media Office said.
“The meeting focused on discussions regarding global energy market conditions, crude oil production, and its flow to markets to meet demand,” the office said following the meeting in Baghdad today.
“The participants emphasized the importance of maintaining stability, balance, and fair pricing, highlighting the vital role played by the OPEC+ group in achieving these objectives,” the office of the Iraqi prime minister noted.
The three biggest producers in the OPEC+ alliance and the two de facto leaders, Saudi Arabia and Russia, discussed the global oil market just days before the group is set to meet on Sunday to decide whether it would begin easing the production cuts from January, as currently planned.
Weak fundamentals could prompt the OPEC+ group at the December 1 meeting to delay – once again – the output increase currently planned to begin in January, according to recent market speculation.
The most recent signal of a possible delay came from non-OPEC producer, Azerbaijan.
OPEC will likely remain committed to production curbs for yet another month, the energy minister of Azerbaijan told Reuters ahead of the group’s Sunday meeting.
“OPEC+ could or couldn't discuss oil output rollover at its next meeting. It is difficult to prejudge,” Parviz Shahbazov told the publication.
OPEC has been under pressure from the market to stick to its production cuts because of depressed prices, with any decision to reverse any part of the cuts seen as extra-bearish for the commodity.