OPEC+ is currently facing internal dissent over its oil pricing strategy.

Senior Iranian Official Criticizes OPEC+

A senior Iranian official within the cartel publicly criticized the group for maintaining high oil prices, which has led to a supply glut and increased production from non-OPEC+ countries. This criticism has raised concerns about OPEC+'s ability to increase production due to its own restrictive policies.

Postponement of Meeting and Saudi Arabia's Push for Delay

As a result, OPEC+ has postponed a scheduled meeting to reassess its strategy and Saudi Arabia is pushing for a further delay in planned output increases. The group is also trying to persuade Iraq and Kazakhstan to adhere to their production quotas.

Challenges from the U.S. Shale Industry

The resilience of the U.S. shale industry further complicates OPEC+'s efforts to manage production levels. Despite recent price dips, the American shale sector remains robust due to efficiency gains. The International Energy Agency has noted that the U.S. shale industry has become more efficient, requiring fewer rigs to achieve the same output. As OPEC+ grapples with its pricing strategy, the potential for U.S. shale production to continue thriving poses a significant challenge.

Implications for OPEC+'s Influence and Role

The cartel's insistence on maintaining high prices may hinder its ability to adapt to changing market conditions. The upcoming meeting on December 5 will be crucial for OPEC+ to reconcile its members' interests and address the realities of a competitive global oil market. The decisions made in the coming weeks will have far-reaching implications for the group's influence and its role in the global energy market.