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
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children

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

Cholera devastates Darfur region amid conflict, US aid cuts

US uses tariffs to strongarm India on Russia ties

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

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

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