Crude prices fail to rally after OPEC+ decision to cut oil supplies

OPEC+ disappointed the market by announcing further oil production cuts for the first quarter of 2024. The decision, aimed at supporting oil prices, includes an additional reduction of 2.2 million barrels per day (bpd) by several OPEC+ countries. Saudi Arabia will extend its voluntary production cut of 1 million bpd until the end of Q1 2024, and Russia will increase its oil export cut from 300,000 bpd to 500,000 bpd until March. Other OPEC+ members, including Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, also committed to smaller cuts. Analysts expressed skepticism about OPEC+ maintaining these promises, and oil prices remained subdued, with Brent crude settling at $82.83 a barrel. The Goldman Sachs ISG predicts oil prices between $70 and $100 per barrel in 2024, reflecting concerns about slowing demand growth and U.S. economic conditions. UN Secretary General Antonio Guterres called for a future without fossil fuel burning at the COP28 summit.

Source: CGTN

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