Latest Update on OPEC+: Meeting Kickoff Postponed as Discussions on Agreement Persist

Principal OPEC+ nations have conveyed assurance in achieving a production accord on Sunday, notwithstanding an eleventh-hour dispute with African members which risked the assembly’s progress.

The commencement of the group’s meeting was deferred for additional negotiations.

Late into Saturday night, ministers were engaged in separate discussions, circulating between hotels in Vienna, and the dialogues continued into Sunday with the aim of resolving lingering disagreements. The United Arab Emirates had been lobbying for an alteration to the method of measuring its output reductions, as per delegate reports. However, any benefit to the UAE would necessitate African countries conceding some of their unused quotas, a decision that is politically contentious for these nations.

Merely two months after the group announced an unexpected cut, the possibility of an additional decrease is under deliberation, but it’s still not a certainty, said the delegates. Oil prices are being affected by disappointing economic data from China and impending recession fears, having dropped by 11% in May.

Simmering in the backdrop is the Ukraine conflict and its influence on oil markets. Sanctions have reconfigured the oil landscape and OPEC’s ally Russia is presently exporting more oil to Asia, challenging Saudi Arabia in its conventional market. Moreover, there’s scant evidence of Russia fulfilling its production cut commitments.

Key Highlights:

  • The UAE and Angola conducted bilateral discussions on baseline revisions, delegates disclosed.
  • Helima Croft of RBC pointed out that the revised baselines for African countries remained a “critical unresolved matter.”
  • Bloomberg, Reuters, and the Wall Street Journal have been denied access to the headquarters for the meeting. Despite this, journalists continue to engage with delegates in unofficial capacities.

Joint Committee Meeting Postponed Once More (12:12 p.m.) The commencement of the joint committee meeting, originally scheduled for 12 p.m., has been delayed again by OPEC+. This is to allow ongoing informal negotiations among members concerning production agreements to proceed, according to delegates.

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