OPEC+ Voluntary Oil Production Cuts Cause Price Swings and Confusion Among Traders

OPEC+ members, including Saudi Arabia, Russia, and Brazil, have agreed to significant voluntary oil production cuts totaling 2.2 million barrels per day in the first quarter of 2024. Saudi Arabia will extend its voluntary production cut of 1 million barrels per day for an additional three months. Other countries, such as Russia, Iraq, and the United Arab Emirates, will also reduce their oil production. Despite these efforts, global oil prices have fallen due to record production in the United States and concerns about weakening demand, particularly in China.