Investing.com -- The OPEC+ coalition is set to hold its next meeting on December 5, likely in a virtual format instead of at its Vienna headquarters, as initially planned, as per media reports.
Delegates have indicated that no invitations or logistical arrangements for an in-person gathering have been made, signaling a shift online for the third consecutive time.
The alliance, comprising 23 nations led by Saudi Arabia and Russia, has increasingly opted for virtual sessions since the Covid-19 pandemic, with only two meetings in Vienna since Russia’s 2022 invasion of Ukraine strained relations with European countries.
Currently, crude prices hover around $75 per barrel, a level insufficient for many OPEC members to meet budgetary needs.
Saudi Arabia, in particular, requires prices closer to $100 per barrel to support its ambitious economic reforms, according to the International Monetary Fund.
OPEC+ has delayed its plan to gradually restore 2.2 million barrels per day of production twice already, pushing the timeline to January 2024 from the original start in October. The decision to extend or modify this plan will likely dominate the discussions, the reports said.
Oil prices have dropped 15% since July, driven by weak demand from China and rising U.S. supplies.
This decline further intensifies the challenges faced by the coalition, which is already managing three distinct production cut agreements—a formal cap restricting output to 39.725 million barrels per day, a voluntary reduction of 1.7 million bpd through 2025, and an additional 2.2 million bpd cut that is scheduled to begin phasing out in December.