OPEC+ Surprise: Voluntary output cuts triggered over 2% drop in oil prices
After much disagreement and deliberation, the group agreed to voluntary output cuts approaching 2 million barrels per day. However, about 1.3 million barrels were already a voluntary cut from Saudi Arabia and Russia
In a move that caught the market off guard, OPEC+ members, including major players Saudi Arabia and Russia, have agreed to implement voluntary oil output cuts for the first quarter of 2024. The decision, aimed at stabilizing oil markets, resulted in a more than 2% drop in oil prices on Thursday, 30 November 2023.
After much disagreement and deliberation, the group agreed to voluntary output cuts approaching 2 million barrels per day. However, about 1.3 million barrels were already a voluntary cut from Saudi Arabia and Russia, leaving an underwhelming 600,000-700,000 barrels of new cuts.
Brent crude futures for January settled 27 cents/barrel or 0.3%, lower to expire at $82.83/barrel.
WTI crude futures settled down $1.90/barrel or 2.4%, to $75.96/barrel and down 6.2%/barrel in November.