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Voluntary Cuts

All articles tagged with #voluntary cuts

energy2 years ago

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.

via OilPrice.com|
#cartel#deficit#energy
energy2 years ago

OPEC+ Implements Significant Production Cuts to Stabilize Oil Prices

The OPEC Plus coalition, led by Saudi Arabia and Russia, plans to implement an additional 1 million barrel cut to daily oil production, along with an extension of an existing cut of equal size. However, these cuts are voluntary and not part of a binding agreement, raising doubts about their durability. The move comes as oil prices have fallen and inventories remain high. In a surprising development, Brazil has joined OPEC Plus, strengthening the group's influence over global oil prices and posing a setback for the Biden administration. Despite the cuts, analysts speculate that prices may not rise significantly due to increased production capabilities outside of OPEC.

via The Washington Post|
#brazil#energy#oil-prices
energy2 years ago

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.

via Reuters|
#brent-crude#energy#oil-prices
energy2 years ago

OPEC+ Implements Voluntary Cuts, Oil Prices React

Several OPEC+ countries, including Saudi Arabia, Iraq, and the United Arab Emirates, have announced additional voluntary cuts to the total of 2.2 million barrels per day, in an effort to support the stability and balance of oil markets. These cuts will be in effect from January to March 2024 and will gradually be returned based on market conditions. The Russian Federation has also announced a voluntary cut of 500 thousand barrels per day for the same period.

via OPEC|
#energy#market-stability#oil-markets
energy2 years ago

OPEC+ maintains 2023 oil production targets with Saudi Arabia's additional cuts.

OPEC+ has decided to stick to its planned oil production cuts for this year, with Saudi Arabia announcing further voluntary declines. The alliance will limit combined oil production to 40.463 million barrels per day over January-December 2024. All voluntary cuts, which were initially set to expire after 2023, will now be extended until the end of 2024. Saudi Arabia will implement an additional voluntary one-month 1 million-barrel-per-day cut starting this July, which can be extended. The move follows contentious talks and a more-than four-hour Sunday meeting of the alliance's Joint Ministerial Monitoring Committee.

via CNBC|
#energy#oil-production#opec