OPEC+ Cuts Drive Oil Price Volatility

Oil prices dropped nearly 2% after OPEC+ producers agreed to voluntary oil output cuts for the first quarter of 2024, which fell short of market expectations. The cuts, approaching 2 million barrels per day (bpd), included an extension of existing voluntary curbs by Saudi Arabia and Russia. The voluntary nature of the cuts left investors unimpressed, as they were smaller than anticipated. The meeting also saw OPEC+ invite Brazil to join the group, while crude output in the US continued to rise.