The Buzz | Oil retreats on signs of OPEC+ discord ahead of key meeting

Oil dropped below $45 a barrel as a consensus within OPEC+ to postpone an output hike planned for January remained elusive ahead of a meeting of the cartel’s power brokers today [Macau time].
Futures in New York declined 1.7%. Most participants in an informal online gathering of OPEC+ ministers yesterday supported keeping production curbs at current levels into the first quarter, said one delegate, although there was opposition from the United Arab Emirates and Kazakhstan.
Oil is still set for the biggest monthly gain since May as Covid-19 vaccine breakthroughs raised optimism for a long-term rebound in fuel consumption. Yet failure by OPEC+ to agree on extending output curbs would see producers restore about 1.9 million barrels a day in supply, potentially pushing the global market back into surplus.
While a majority of OPEC-watchers are expecting a three-month delay to the planned output increase, a recent price rally may complicate talks. Some producers such as Iraq – which is seeking cash upfront for a long-term crude-supply contract – are keen to pump more.