Oil prices experienced a significant drop, plummeting over 4%, following the announcement of a delay in a meeting among major oil-producing nations. Both Brent crude and West Texas Intermediate crude took a hit, with Brent trading down 3.7% to $79 a barrel and WTI down 3.8% to $75 a barrel.
The delay in the meeting was declared by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), who offered no explanation for the postponement. However, Reuters reported that the delay was a consequence of a disagreement among certain members regarding current production levels and potential cuts. Additionally, Bloomberg highlighted Saudi Arabia’s dissatisfaction with the output levels of some OPEC members.
The decrease in oil prices could prove beneficial for US drivers. As a result of the drop, the average price of regular gas has declined by nearly 8% in the past month alone. This news comes as a relief to consumers who have been grappling with rising fuel costs.
The decline in Brent and WTI prices has persisted for four consecutive weeks due to concerns surrounding record crude oil production in the US and weakening global demand, particularly in China. Despite prior efforts by OPEC+ to limit output, prices have continued to spiral downward.
There is now a level of uncertainty surrounding whether OPEC+ members will be able to reach an agreement on further cuts. Countries such as Russia and Nigeria may be reluctant to accept lower production targets. With the meeting scheduled for November 30, industry experts anticipate a challenging process in finding a resolution.
As the world awaits the outcome of the meeting, attention will remain focused on the fluctuations in oil prices. Whether the drop will be short-lived or sustained, only time will tell. In the meantime, drivers can enjoy the slight relief at the pump, while OPEC+ works towards stabilizing the market.
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