by Olesya Astakhova and Alex Lawler
MOSCOW/LONDON (Reuters) – OPEC+ will consider the possibility of further lowering its oil supply at its next meeting at the end of the month after the nearly 20% drop in crude prices since the end of September, a we learned from three sources within this cartel bringing together the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The price of a barrel of Brent fell to around $79 after reaching an annual peak in September at $98. Concerns about demand and a possible excess supply next year are putting pressure on prices, despite market supply cuts already decided by OPEC+ and the Israeli-Palestinian conflict in the Middle East.
Saudi Arabia, Russia and other OPEC+ members have already pledged to cut oil production by 5.16 million barrels per day (bpd), or about 5% of daily global demand.
These cuts include 3.66 million bpd from OPEC+ and additional voluntary cuts from Saudi Arabia and Russia.
An OPEC+ source, who declined to be named, said existing cuts may not be enough and the group would likely analyze the merits of possible additional measures at the meeting. Two other OPEC+ sources said deeper cuts could be discussed.
“It is not pleasing to see that market volatility is greater ahead of the next meeting while fundamentals remain strong overall,” one of the OPEC+ sources said.
“Ministers are likely to express ideas on what more needs to be done to ensure a stable trend.”
OPEC+ energy ministers will meet on November 26. The group already adopted, at its last meeting in June, a plan to reduce supply by 3.66 million bpd by 2024.
OPEC and the Saudi Energy Ministry did not respond to requests for comment.
(Reporting Olesya Astakhova and Alex Lawler; with contributions from Ahmad Ghaddar and Maha El Dahan; French version Augustin Turpin)
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