OPEC+ will hold its meeting this weekend online instead of in person, delegates confirmed. This marks the third consecutive time the group, led by Saudi Arabia and Russia, has switched its planned in-person gathering in Vienna to a virtual session. The delegates, who requested anonymity, did not provide a specific reason for the change, though the shift had been anticipated in recent days.
At the upcoming meeting, key OPEC+ members will discuss whether to continue plans to gradually increase oil production, a process that has already been delayed twice. The group had initially planned to restore 2.2 million barrels per day in monthly increments starting in January, a timeline that was postponed from October as oil prices have struggled to recover.
Oil futures have fallen by 15% since early July, driven by weaker demand from China and growing supply from the U.S. With prices hovering around $75 a barrel, they remain too low for many OPEC members, including Saudi Arabia, to meet government spending needs. The International Monetary Fund estimates Riyadh needs prices closer to $100 per barrel to fund its ambitious transformation plans.
Traders and analysts surveyed by Bloomberg last week are skeptical that OPEC+ will proceed with its planned output increases next year. Citigroup and JPMorgan Chase predict an impending surplus will push crude prices down to around $60 per barrel, with further declines possible if OPEC+ increases production.
The 23-nation OPEC+ alliance has only met in person twice in Vienna since Russia’s invasion of Ukraine in early 2022, which strained Moscow’s relations with European Union countries and others. Most meetings since the COVID-19 pandemic have been held virtually.
At the group’s last meeting in June, Saudi Arabia issued a last-minute invitation for the seven countries currently involved in supply cutbacks to meet at the Ritz hotel in Riyadh.
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