OPEC+ Faces Quota Unease and Geopolitical Risks in Shaky Oil Market

The OPEC+ meeting, postponed to a virtual format, is overshadowed by internal disagreements and geopolitical risks. Angola and Nigeria have objected to lower baselines for next year, which could pose risks if their output recovers. Compromise has yet to be reached, and the meetings coincide with the UN Climate Change Conference hosted by the UAE. OPEC+ is also grappling with a perceived disconnect between prices and supply-demand fundamentals, as well as political developments in the Middle East. The coalition may need to make a policy announcement to support the market, but further cuts could strain relations with the US. Geopolitical tensions, including the conflict between Israel and Hamas, add to the uncertainty.