3 hours ago
London: The 13 member states of the Organization of Petroleum Exporting Countries (OPEC) will resume talks on Tuesday aimed at adopting a common position regarding future quotas for black gold production in a market affected by the Covid-19 epidemic.
An OPEC source told AFP: “Informal talks are expected on Tuesday, and no meeting will be held with all the ministers,” as happened Monday.
The cartel decided on Monday, four hours after a video conference, to postpone the talks until Tuesday, which market observers interpreted as evidence of a dispute in OPEC.
By the end of the year, with the outbreak of the second wave of Covid-19 cases in many countries, it seems to many that it is too early for an additional two million barrels per day to be put on the market in January, as was scheduled in April.
But the recent rise in oil prices – by 25% since the beginning of the month – thanks to companies such as AstraZeneca, Pfizer-Biontech and Moderna announcing the launch of a new vaccine against Covid-19, contributed to some participants seeing the light at the end of the tunnel and thus adhering to the established schedule, Especially since the voluntary deductions represent a great effort to the revenues of producing countries, even if they contributed to improving prices.
“If some consider that the market is still weak to flood it with more barrels of oil, others want to increase production and benefit from the high prices to the maximum degree,” said Avtar Sandu, an analyst at Philip Futures.
And the completion of the talks within the cartel on Tuesday is accompanied by a postponement to Thursday of the second part of the summit, originally scheduled for December 1, which includes not only OPEC members but also OPEC Plus members, including Russia.
Anne Louise Hittel of Wood Mackenzie said the delay “reflects the issues that need to be resolved.”
Brent North Sea and West Texas Intermediate crude oil prices remained stable against the fluctuations that the cartel is accustomed to, and maintained their stability with the start of the European trading session after a slight decline on Monday.