Oil prices recover from slump after underwhelming OPEC+ cuts


SINGAPORE (Reuters):Oil prices pared losses on Friday, after falling sharply in early trade and by over 2% on Thursday on perceptions that the voluntary oil output cuts agreed by OPEC+ producers were underwhelming.

Brent crude futures for February rose 6 cents, or 0.1%, to US$80.92 a barrel by 0820 GMT. US West Texas Intermediate crude futures rose 17 cents, or 0.2%, to US$76.13.

OPEC+, which pumps over 40% of the world's oil, is focusing on reducing output as prices have fallen from about US$98 in late September amid concerns over weaker economic growth in 2024 and expectations of a supply surplus.

Saudi Arabia, Russia and other members of OPEC+ agreed to voluntary output reduction of 900,000 bpd in addition to extending 1.3 million bpd in production cuts already in place. Delegates had earlier discussed as much as 2 million bpd in new output curbs.

Goldman Sachs said its December forecast for Brent was "moderately tilted" to the downside of its previously estimated range, calling the oil producers' move a "temporary response," and "difficult to implement."

"The market had started to price in a large probability of extra cuts, including a potential longer-lasting and official non-voluntary cut," Goldman said in a note on Friday, but kept its 2024 price outlook due to an expected slowdown in U.S. supply growth and low OPEC supply.

Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Kazakhstan and Algeria were among producers who said cuts, which amounted to 2.2 million bpd in total, will be unwound gradually after the first quarter, market conditions permitting.

Separately, Brazil said on Thursday it would join the OPEC+ next year, though such a move wouldn't bind the south America's largest country to production cuts.

(Reporting by Laura Sanicola and Sudarshan Varadhan; Editing by Stephen Coates and Kim Coghill) - Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Oil , Slight Recovery , Slump

   

Next In Aseanplus News

Malaysian woman, 57, dies on Emirates flight to KL after medical emergency landing in Chennai
Taiping woman loses more than RM180,000 through parcel scam
Ringgit likely to trade at current level next week and stay between 4.76 and 4.77 level against US dollar
Buying momentum expected to be sustained on Bursa Malaysia from Monday (Feb 26) onwards
Brunei holds National Day celebration in grand style in the capital
Singapore engineer pivots from oil rigs to 'fish farm of the future'
Sri Lankan President highlights plans to link Hambantota port with Myanmar
Cricket-Jurel 90 powers India to 307 all out against England
Philippines accuses China of attempting to block another vessel
Vietnam's VinFast seeks India EV import duty cut as plant construction starts

Others Also Read