Posted 12/9/2023, 2:12:28 PM
OPEC+ Cuts Fail to Convince Market as Oil Prices Plunge Despite Vow to Slash Output
- OPEC+ pledged to cut oil production by 900,000 barrels per day, but crude prices have still plunged 11% to a 5-month low as traders doubt the cuts will be enough
- Oil demand growth is slowing while US shale and other rival supplies are rising, limiting OPEC+'s ability to prop up prices
- The extra cuts don't start until January and details were confusing, with no formal quotas issued
- Top OPEC+ officials insist the cuts will happen in full, but the market seems unconvinced
- Some speculate OPEC+ may call an emergency meeting or shift strategy as current efforts to support prices may just benefit US shale