Oil prices drop significantly ahead of OPEC+ meeting

Oil prices came under pressure on Thursday ahead of an eagerly awaited meeting of the OPEC oil alliance in Vienna.

In early trading, a barrel of North Sea Brent cost $114.46. This was $1.83 less than the previous day. The price of a barrel of US West Texas Intermediate (WTI) fell by $1.96 to $113.3.

Two press reports have caused a great deal of speculation in the run-up to the regular ministerial meeting of the oil-producing countries.

The Financial Times reported that Saudi Arabia had signalled to Western countries that it would expand its production if Russian production fell significantly.

Earlier, the Wall Street Journal had reported on a debate to temporarily exclude Russia from OPEC production targets due to the West’s tough sanctions over the invasion of Ukraine.

In principle, it is expected that OPEC will again moderately increase its production.

However, there is speculation – including in the Financial Times – that large producers such as Saudi Arabia or the United Arab Emirates could expand their production more significantly.

OPEC is a grouping of the Organization of the Petroleum Exporting Countries (OPEC) plus allied producers, including Russia.