Critical meeting of the OPEC+ group

The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) met today in Vienna to discuss further production cuts.

The meeting comes at a time when we are faced with fluctuating oil prices and imminent abundance of supplies. According to sources that told Reuters, the start of the official negotiations was delayed by at least three and a half hours due to the countries’ discussions on criteria and production quotas.

PRODUCTION INTERRUPTIONS ON THE SCHEDULE

The sources said further production cuts are on the agendas for today’s session. Thus, to the current cuts of 2 million barrels per day, which were surprisingly announced in April and took effect in May, new cuts can be added.

Influential OPEC members and major Gulf producers have also tried to persuade sub-producing African countries such as Nigeria and Angola to set more realistic production targets, according to the sources.

DIRECTLY AFFECTS PRICES

OPEC+ members extract about 40 percent of the world’s crude oil. This means that political decisions can have a significant impact on oil prices.

After the cuts announced in April, oil prices rose around $9 a barrel to more than $87. Subsequently, prices fell under pressure from concerns about global economic growth and demand.