At its recent meeting, OPEC extended its base oil production cuts through 2025 despite a drop in oil prices after the announcement, a move that reflects uncertainties about future oil demand.
On Sunday, the Organisation of Petroleum Exporting Countries and their partners in
members at 2.2 million bpd and group-wide cuts of 3.66 million bpd, the total amount of oil withheld from markets comes in at close to 6 million bpd—which is set to continue being withheld for another 18 months. And yet oil prices dropped after the would extend its cuts, the group said, but it might begin to wind down some of these cuts later in the year, should market conditions improve—meaning if benchmarks reach the desired level. Judging by the reaction of traders to the news of possible additional supply coming to the market, the chances of that happening are rather slim. And this leaves
sees a slight weakening in demand growth to 1.8 million bpd. So it extended most of its cuts, although it agreed to grant the UAE a higher production baseline meaning more production, beginning from January next year. The higher baseline adds 300,000 bpd to the UAE’s quota. That 300,000 bpd and the news of lower U.S. retail gasoline prices caused a slump in oil benchmarks, with both Brent crude and WTI shedding over $4 per barrel in a day.
would need for its 2.2-million-bpd growth scenario to pan out, Russell said in a column this week. A decline in the average price of gasoline in the United States also contributed to the bearish sentiment of traders that triggered the selloff that pushed Brent down by $4 per barrel and cost WTI about $6 per barrel on Monday. GasBuddy reported that the average had shed $0.058 to $3.50 per gallon, which was immediately translated as weaker demand in the world’s largest consumer of crude.
OPEC+ Oil Production Oil Prices Demand Forecast Market Volatility Production Cuts Brent Crude WTI Gasoline Prices
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