The Opec+ group of oil producers has delayed a meeting to discuss further supply cuts in a sign of disagreement between member states.
The meeting, which was due to be held on 26 November, will now take place four days later, a delay that prompted a drop in oil prices.
Clarksons Securities warned earlier this week that deeper Opec+ cuts would affect tanker rates in the coming year, as a reduction in supplies creates more competition for cargoes.
Brent crude was down more than 4% on the day to fall below $79 on Tuesday after reaching highs of more than $94 in late September.
The delay comes amid suggestions that Saudi Arabia was unhappy with the level of compliance for existing cuts even as it pushes for more to bolster prices and address weaker-than-expected global demand.
The organisation, which includes Opec members plus allies like Russia, had already promised cuts of about 5m barrels per day since late 2022. This included a further voluntary cut of 1m bpd announced by Saudi Arabia and 300,000 bpd from Russia in July.
The cuts had the effect of driving up prices for global oil, including in Russia which led to its main crude export grade busting the $60 a barrel oil price cap set by G7 nations to try to limit Russian fossil fuel revenues.
Urals hit a peak of more than $83 a barrel in late September since falling back to about $63 on Tuesday, according to US-based Trading Economics.
That development forced many Western ship operators, financiers and insurers out of the Russian trades for fear of breaching sanctions.
It also saw the US in October pump almost as much as the combined production of Saudi Arabia and Russia.
Jorge Leon of Rystad Energy said: “This postponement indicates difficulties within the Opec+ group to reach an agreement to cut production.
“It’s worth noting that a ministerial meeting has been postponed before but never for four days… therefore, reaching a new agreement to cut production will prove to be challenging.”
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