The Impact of OPEC Output Cuts on Falling Oil Prices
Analysts and traders believe that OPEC's 2.2 million barrel-per-day production cuts in the first quarter of 2024 may have no effect on oil prices unless extended further, as there is a potential supply surplus. The short-term voluntary output cut agreement is seen as insufficient to make a meaningful difference in physical supply, and American shale producers are now less vulnerable to OPEC's decisions due to consolidation.