Decisions on oil production are being determined at the OPEC+ meeting.

OPEC+ Reviews Production Policy

The critical meeting of the OPEC+ coalition this weekend will discuss whether the pause in oil production will continue. Three delegates indicated that the decisions made at the meeting will likely continue the current strategy. This coalition, led by major members such as Saudi Arabia and Russia, will meet via monthly video conference on January 4.

Production Increases and New Strategies

The increasing surplus in global oil supply is one of the main factors influencing OPEC+'s decision. Delegates, who requested anonymity in private discussions, reported that the decision to halt further production increases in the first quarter would be reviewed, following the rapid revival of production at the beginning of 2021. OPEC+ confirmed its decision to halt production taken in November at this month's meeting.

Oil Prices and Global Demand

Crude oil futures have lost 17% of their value in 2023, marking the largest annual decline since the pandemic of 2020. In addition to OPEC+, the increase in supply from competing countries and the slowdown in global demand growth have negatively affected oil prices. The International Energy Agency and other forecasting organizations expect a record surplus in the coming year, while the OPEC secretariat itself predicts a modest surplus.