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U.S. and global crude prices surged over 4% on Friday subsequent to a week of descent.
As per the report from the Financial Times, Saudi Arabia is contemplating extending the production reductions until 2024.
OPEC+ is set to convene in Vienna on November 26 to deliberate any alterations to production levels.
American as well as international crude prices rebounded on Friday after a period of decline, following reports from the Financial Times that the primary producer Saudi Arabia is mulling over prolonging its output cuts until 2024.
West Texas Intermediate soared by 4.03% to $75.80 a barrel, while the international benchmark Brent crude spiked by 4.24% to $80.70 a barrel. Both benchmarks had witnessed a drop to multi-month lows, slipping below the crucial threshold of $80 per barrel earlier in the week.
There are indications that Saudi officials might prolong the current reduction of one million barrels per day until at least the spring, sources familiar with the matter informed the FT.
Previously, the voluntary reductions were anticipated to conclude by the end of 2023.
OPEC+ leaders are scheduled to assemble in Vienna on November 26 to finalize any new determinations regarding oil production among member nations, and any further curtailment in production could exacerbate tensions with the US. The primary rationale behind the cuts is the decline in crude prices, but the report also noted that some members have concerns regarding the Israel-Palestine conflict and the escalating crisis in Gaza.
The conflict could lead to additional reductions in OPEC+ production by one million barrels per day, mentioned an individual. Kuwait, Algeria, and Iran are reportedly the members most aggrieved by the ongoing conflict in Gaza, according to the FT.
No definitive decision has been reached, and sources have indicated that any public statements from Prince Abdulaziz bin Salam will not center on Israel-Palestine, but rather on the oil markets.
“The level of anger and the pressure that Gulf leaders feel from their populations to respond in one way or another should not be underestimated,” a source told the FT.
Read the original article on Business Insider