Energy: OPEC+ Extends Oil Production Cuts for Another Two Months
Oil prices remained stable after a sharp drop recorded immediately after the OPEC+ announcement
L’accordo mira a sostenere il prezzo del petrolio e a garantire una maggiore stabilità del mercato globale.
OPEC+ oil-exporting countries have decided to “postpone the restoration of oil production until the end of December 2024.” According to a statement published on the organization’s website, “eight OPEC+ countries – Russia, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, Oman – will continue to voluntarily cut production by 2.2 million bpd through the end of December.”
Initially, the gradual recovery of oil production was supposed to start in October, but in September, after analyzing oil markets, OPEC+ decided to postpone the increase in production for another two months, until December.
In a separate statement, Algeria announced that it has agreed to extend a voluntary production cut of 2.2 million barrels per day until the end of December 2024. Algeria and seven other OPEC+ countries have set voluntary cuts in addition to production limits set by the organization of oil-exporting countries “to stabilize the market and prevent price fluctuations.” Thus, the agreement is aimed at supporting oil prices and guaranteeing greater stability in the global market.
According to Oilprice, “oil prices fell after the decision by OPEC+ to postpone the resumption of production.” But it seems to have been only a “momentary price correction,” after which the uncertainty surrounding the conflict in the Middle East took over, and prices started to rise again. At mid-day, the price of Texas Intermediate crude WTI Crude futures (December delivery) added 2.71%, rising to $71.37 per barrel, while BRENT rose to $74.77 per barrel (+2.28%).
