Oil Prices Retreat As OPEC+ Cuts Another 684KBPD, Brazil Joins OPEC+

Oil prices began to retreat on Thursday afternoon as it became clear that OPEC+ members were agreeing to voluntary cuts beginning in the new year, and that those cuts would be announced only by each member country instead of by the group as a whole.

- WTI crude futures fell after OPEC+ concluded its Ministerial Meeting.
- Immediately following the meeting’s kickoff, it was also announced that Brazil would join the OPEC+ group effective in January.
- All together, the total voluntary cuts for the first quarter is 2.184 million bpd.

Brent crude oil prices, which had been trading up around 1.5% during the JMMC meeting, sank to +0.16% on the day in the absence of an announced production strategy from the group’s leadership. WTI slipped into the red with a loss of 3.43% on the day following the full meeting.

The specifics of what was agreed to for the first quarter of 2024 among the OPEC+ members:

Algeria agreed to cut oil production by another 51,000 bpd
Kazakhstan agreed to reduce oil output by an additional 82,000 bpd
Saudi Arabia agreed to extend its 1 million bpd output cut
Russia’s Deputy Prime Minister Alexander Novak said that it would deepen voluntary oil export cuts by 300,000 bpd, and said it would roll over the existing 500,000 bpd vountary production cuts
Oman will cut another 42,000 bpd
Iraq will voluntarily cut 211,000 bpd
Kuwait will cut 135,000 bpd
The UAE will cut 163,000 bpd $Occidental Petroleum(OXY.US)$ $Chevron(CVX.US)$ $Exxon Mobil(XOM.US)$ $S&P 500 Index(.SPX.US)$ $Dow Jones Industrial Average(.DJI.US)$ $Nasdaq Composite Index(.IXIC.US)$

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efficentupup

True and timely

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