OPEC+ has delayed a ministerial meeting expected to discuss oil output cuts by four days, to Nov. 30 from Nov. 26, the group said in a statement on Wednesday, in what many considered a surprise development sparking a further drop in oil prices, according to a report in Reuters.
Sunday’s meeting of the Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, had been expected to consider further changes to a deal that already limits supply into 2024, according to analysts and OPEC+ sources.
The report said the delay to the meeting into next week “might be to allow more time for countries to discuss both compliance with existing output cuts and potential additional cuts.” Reuters cited an OPEC+ source said, declining to be named.
“Uncertainty is never good for financial markets, with markets now having to wait longer to get clarity what OPEC+ does next year,” said UBS analyst Giovanni Staunovo told Reuters. “The postponement of the meeting also shows there are some different views among the group participants.”
Oil has dropped around $10 a barrel in the last month on the UK-based Brent index.
