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
Israeli media: Additional missile launches detected toward center.
Sirens blast across northern, southern occupied Palestine.
Israeli Home Front Command: Ballistic missile launch from Iran has been detected. Sirens are expected to sound soon.
Israeli media: Missile launch toward al-Naqab detected.
Araghchi: Together with all Iranians, I thank our brave Armed Forces who remain ready to defend our dear country until their last drop of blood, and who responded to any attack by the enemy until the very last minute
Araghchi: The military operations of our powerful Armed Forces to punish Israel for its aggression continued until the very last minute, at 4am
Araghchi: The final decision on the cessation of our military operations will be made later
Araghchi: However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards
Araghchi: As of now, there is NO "agreement" on any ceasefire or cessation of military operations
Iran's Foreign Minister Abbas Araghchi: As Iran has repeatedly made clear: Israel launched war on Iran, not the other way around

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: Military operations halted, conditional on Israeli aggression

Netanyahu instructs ministers not to comment on Iran ceasefire

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

Israeli workers survey the site where a missile launched from Iran struck in Haifa on Sunday, June 22, 2025. (AP)

True Promise 3, wave 20: 40 missiles launched, Kheibar-Shekan in first

  • Politics
  • 22 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025
Iran's heavy barrages impact multiple Israeli targets overnight

Iran's heavy barrages impact multiple Israeli targets overnight

  • Palestine
  • 18 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
President Donald Trump speaks with reporters upon arriving at Morristown Municipal Airport in Morristown, N.J., Friday, June 20, 2025. (AP Photo/Manuel Balce Ceneta)
Politics

Trump lashes out at media outlets for downplaying Iran strike impact

ap
Politics

Turkey denies role in US-Israeli strikes on Iran nuclear sites

Iran targets US air base in Qatar with 'destructive' missile strike
MENA

Iran retaliates, targets US air base in Qatar with missiles

Demonstrators hold up a banner during a protest by Palestine Action group in London, Monday, June 23, 2025. (AP Photo/Frank Augstein)
Politics

UK signals 'terror' ban on 'Palestine Action', sparking protests

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