The Opec+, which was to meet physically Sunday in Vienna, headquarters of the cartel of oil producers, will finally opt for “the virtual format”, said to AFP a source close to the organization.
Representatives of the thirteen members of the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and their ten allies led by Russia, are meeting as speculation intensifies about a further reduction in production quotas to boost prices.
After nearing all-time highs in March, oil prices have fallen back heavily to their early 2022 levels as the threat of a recession overshadows fears of shortages related to the war in Ukraine.
In a note, UniCredit analysts said they expect “proactive” measures from Opec+ to put “upward pressure on prices,” which are suffering from growing concerns around Chinese demand and the sluggish global economy in general.
The two global black gold references are now far from the peaks reached a few days after the start of the Russian offensive, when they had climbed to more than 130 dollars a barrel.
U.S. WTI and North Sea Brent have since lost about 40% each, hovering around $80.
The cartel may also “feel obliged to adopt a more aggressive stance to dissuade the West from regulating the price of other crude references,” points out Edoardo Campanella of UniCredit.
Opep+ does not look favorably on the discussions around the Russian oil price cap, desired by a coalition of G7 countries, the European Union and Australia.
At its last meeting in early October – held in the Austrian capital for the first time since March 2020 – the alliance had decided on a drastic cut in its production targets, already in order to support prices.
The cartel immediately drew the wrath of the White House, which accused producers of “aligning themselves” with Moscow.
