Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas
Iranian Foreign Minister Abbas Araghchi holds a phone call with IAEA Director General Rafael Grossi
Trump envoy Witkoff has sent 'detailed and acceptable proposal' to Iran for nuclear deal; it's in their best interest to accept it: White House Press Secretary Leavitt
Hamas official says Witkoff's position toward group was 'unfair' and shows 'complete bias' to 'Israel'
Hamas official says it has considered Witkoff's proposal acceptable for negotiations, says 'Israel's' response was incompatible with what the group agreed on
Hamas official says group has not rejected Wikoff's proposal for Gaza ceasefire

Oil prices plunge over 2% after OPEC+ output cut missed expectations

  • By Al Mayadeen English
  • Source: Agencies
  • 1 Dec 2023 09:52
4 Min Read

The OPEC+ voluntary oil production cut calmed investors who were concerned about a larger volume of oil output to be slashed.

  • x
  • Oil prices plunge over 2% after OPEC+ output cut missed expectations
    Active pump jacks increase pressure to draw oil toward the surface at the South Belridge Oil Field on February 26, 2022 (AFP)

Oil prices took a significant tumble on Thursday, plummeting by over 2% in response to the OPEC+ group's decision to implement voluntary oil production cuts for the first quarter of the upcoming year, which fell short of the expectations prevailing in the market.

The Brent crude futures contract for January concluded at 27 cents, or 0.3%, lower, settling at $82.83 per barrel, marking a 5.2% loss for the month. On the other hand, the February contract, set to become the front month on Friday, experienced a more substantial decline of $2.00, equivalent to 2.4%, closing at $80.86.

Meanwhile, US West Texas Intermediate (WTI) crude futures followed suit, settling down $1.90, or 2.4%, to $75.96, with November witnessing a decrease of 6.2%.

Read more: Russia, Venezuela to resume, double oil production

The decision taken by key OPEC+ members, including Saudi Arabia and Russia, who together account for over 40% of global oil production, was to implement voluntary production cuts, nearly reaching 2 million barrels per day (bpd) for the first quarter of 2024.

However, it became apparent that at least 1.3 million bpd of these cuts were essentially an extension of the voluntary reductions that Saudi Arabia and Russia had already been implementing. Earlier discussions had suggested the possibility of additional cuts of up to 2 million bpd.

On November 13, OPEC released a monthly report announcing that it expects an increase in global oil demand by 2.5 million bpd, pushing overall demand to 102.1 million bpd.

This, alongside expanded oil cuts, is expected to raise oil prices, a result that Saudi Arabia has been actively seeking in 2023. 

Reflecting on the outcome, Callum MacPherson, head of commodities at Investec, remarked, "For now, the outcome does not live up to the expectation... in recent days."

Related News

Iran warns against politicization of IAEA, during critical period

US Envoy calls Hamas ceasefire response 'totally unacceptable'

What left investors less than enthused was the voluntary nature of these cuts.

James Davis at FGE commented, "From what we’ve seen so far, this looks like a paper cut of around 600-700,000 barrels per day (bpd) vs Q4 2023 planned levels. It could at best be an actual cut of around 500,000 bpd compared to Q4. This might be just enough to keep the market balanced in Q1, but it will be close."

The group of oil producers, including Saudi Arabia, Russia, Kuwait, Kazakhstan, and Algeria, stated that they would gradually unwind these cuts after the initial quarter, provided that market conditions allowed for it.

This meeting, coinciding with the UN climate conference in Dubai, had initially been scheduled for the previous week but was postponed due to disagreements regarding output quotas for African producers.

Read more: Middle East situation could push oil to $157 a barrel: World Bank

In an intriguing development, OPEC+ extended an invitation to Brazil, one of the world's top 10 oil producers, to join their ranks. Brazil's energy minister expressed hope to become a member in January.

Meanwhile, the United States, the world's leading oil producer, continued to witness an increase in crude output, rising by 1.7% in September to reach a monthly record of 13.24 million bpd, as reported by the Energy Information Administration.

However, crude production in Texas, a significant contributor, experienced a marginal 0.1% dip, dropping to 5.57 million bpd, marking the lowest level since July and the first decline in production since April, according to the EIA.

OPEC originally encompassed 13 oil-producing countries, including Algeria, Angola, the Republic of Congo, Equatorial Guinea, Gabon, Iraq, Iran, Kuwait Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela continues to be referred to as OPEC or OPEC-13.

Recently, several non-OPEC countries including, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, South Sudan, Sudan, and most significantly Russia, began to participate in the organization's policies to form a loose grouping known as OPEC+. It is worth noting that these countries are still considered non-OPEC countries.

Read more: Iran oil income up 35% in 2022 to $54bn: EIA

  • United States
  • OPEC
  • Russia
  • Oil
  • OPEC+
  • Oil prices
  • Saudi Arabia

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS