As oil prices face their fifth consecutive weekly loss, a trend not seen since December 2021, the market reacts with nearly a 5% decline attributed to OPEC’s decision to delay their meeting. The reported cause, “production disagreements,” marks a notable crack in OPEC’s unity, the first sign of such strain since the pandemic began.
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Oil tumbles 4% as Opec+ meeting on output cut ‘unexpectedly’ delayed
Oil prices tanked 4% on Wednesday as OPEC+ producers unexpectedly delayed a meeting on output planned for Sunday, raising questions about the future course of crude production cuts.
Brent crude futures was down $3.39, or 4.1%, to $79.06 a barrel by 1412 GMT. U.S. West Texas Intermediate (WTI) crude futures were down $3.26, or 4.2%, to $74.51.
OPEC+ delayed its ministerial meeting to Nov. 30 from Nov. 26 as previously scheduled, OPEC said in a statement, a surprise development that gave no reason for the postponement.
The meeting of OPEC+, which includes Saudi Arabia, Russia and other allies and members of the OPEC group of oil-producing countries, had been expected to consider further changes to a deal that already limits supply into 2024, according to analysts and OPEC+ sources.