• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Editorial Dept

Editorial Dept

More Info

Premium Content

Digesting the OPEC+ Production Cuts

OPEC+ Agrees on Significant Output Cuts Amid Market Uncertainty

In a decisive move, OPEC+ members, led by Saudi Arabia, have agreed to substantial voluntary output cuts totaling about 2.2 million barrels per day (bpd) for early next year. This announcement, which emerged from the group's online meeting, has sent ripples through the global oil markets.

Market Reaction to Voluntary Supply Cuts

Despite the sizeable cut, benchmark global oil prices settled down by around 2%. This subdued reaction is attributed to the voluntary nature of the reductions and prior investor expectations of even deeper cuts.

The total curbs, amounting to 2.2 million bpd, include an extension of the existing voluntary cuts by Saudi Arabia and Russia of 1.3 million bpd. The additional 900,000 bpd of cuts include 200,000 bpd of fuel export reductions from Russia, with the rest being divided among six other OPEC+ members. Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Kazakhstan, and Algeria are among the producers who have agreed to unwind these cuts gradually after the first quarter of next year, depending on market conditions.

Brazil Joins OPEC+, Boosts Bloc's Clout Amid Cut Skepticism

The meeting also focused on discussing output for 2024, amidst forecasts of potential market surplus and weaker economic growth. The decision to invite Brazil, a top 10 producer, to join OPEC+ signifies a strengthening of the group's influence in global oil production. Analysts interpret…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News