OPEC+ Cuts and Uncertainty Impact Oil Market

OPEC+ members have announced additional "voluntary" cuts in oil production, resulting in a small deficit instead of the previously forecasted surplus for the first quarter of 2024. ING Bank sees this deficit lending some upside to oil prices, but the market reacted negatively due to the voluntary nature of the cuts, suggesting difficulty in future agreements. The decision highlights the diminishing power of OPEC as a cartel and the increasing influence of the US in the oil market. The voluntary cuts, announced by eight individual members, may not even happen if the markets are strong. The situation exposes the political nature of OPEC and its limited ability to control the oil market.