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Navigating Oil Markets: OPEC+ Meeting Delay Sparks Surge in Prices Amidst Supply Uncertainty

Navigating Oil Markets: OPEC+ Meeting Delay Sparks Surge in Prices Amidst Supply Uncertainty
Tuesday 28 November 2023 - 17:00 Journalists: Dakir Madiha
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Tuesday witnessed a surge in oil prices prompted by supply uncertainty, further exacerbated by reports of production disputes among OPEC+ members for the upcoming year.

Brent crude, the international standard, was priced at $80.50 per barrel at 11:40 a.m. local time (0840 GMT), reflecting a 0.79% increase from its previous closing price of $79.87 per barrel on Monday.

Simultaneously, the price of a barrel of West Texas Intermediate (WTI), the benchmark, rose by 0.81% to $75.47 from $74.86 per barrel on Monday.

Persistent supply volatility on international oil markets continues to impact crude prices. The OPEC+ meeting scheduled for November 26 in Vienna has been rescheduled to November 30, an extension of four days.

Commencing in January, the group is expected to finalize its production quotas.

Despite the group's consensus in 2022 to reduce daily production by approximately 5 million barrels, global market supply surpluses have endured. Projections indicate that the average daily global oil supply could reach 102.8 million barrels if OPEC+ production limits persist, resulting in a surplus of nearly 1.3 million barrels per day, according to the International Energy Agency's latest analysis, despite production reductions.

Investors are closely monitoring statements from US Federal Reserve officials for additional insights into the interest rate policy of the world's largest energy consumer. Analysts anticipate macroeconomic data from the United States later in the day.

Meanwhile, concerns on the supply side have slightly diminished following a prisoner exchange between Hamas and Israel and the extension of a four-day humanitarian break by an additional two days.


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