OPEC+ Caught in Oil Policy Quandary Ahead of December Meet

OPEC+ faces a strategic challenge as it prepares for its December meeting: increasing oil output could be risky due to waning demand, while further cutting supply faces resistance from members eager to produce more. Despite existing cuts, oil prices remain stable, and deeper cuts seem unlikely.

OPEC+ is bracing for a challenging oil policy decision at its upcoming December meeting, amid complex dynamics affecting its strategies. The organization, which includes Russia, has already postponed planned production increases to support a market weakened by sluggish global demand.

Sources from within OPEC+ indicate that extending current production cuts into the first quarter of next year is likely, although some members are advocating for increased output quotas. This internal tension highlights the delicate balance the group must maintain to avoid destabilizing oil prices.

Despite maintaining significant production cuts, oil prices have hovered between $70-$80 per barrel this year. Analysts suggest that any strategy to significantly alter output will need to carefully consider OPEC+'s overall market share and competition from non-OPEC producers.

(With inputs from agencies.)