Oil prices faced another setback on Thursday following the unexpected decision by OPEC+ to postpone a crucial policy meeting, hinting at renewed discord within the alliance.
Simultaneously, global stock markets experienced mixed trading as two U.S. reports tempered recent optimism regarding future interest rates.
Both major crude contracts saw declines on the news of OPEC+ delaying its highly anticipated meeting by four days to November 30.
On Thursday, prices dropped another one percent, adding to the almost five percent plunge witnessed on Wednesday after the announcement of the delay.
Reports suggest that the decision came about as Angola and Nigeria resisted lower production targets advocated by other members.
Saudi Arabia was reportedly preparing to extend a one-million-barrel-a-day output cut into the new year. Earlier this year, Riyadh and Moscow had implemented significant cuts to boost oil prices, which have been under pressure due to economic challenges in the United States, Europe, and particularly China.
Stephen Innes, an analyst at SPI Asset Management, noted, “Oil prices fell after OPEC reported a delay in the weekend, a meeting which hints at a growing rift among OPEC+ producers.”
He pointed out that with U.S. and non-OPEC production increasing, it’s not surprising that producers are inclined to pump more oil rather than reduce production to avoid losing market share.
The recent ceasefire in the Israel-Hamas conflict also contributes to a sense of stability in the region.
