OPEC+ Considers Deeper Cuts to Prop Up Falling Oil Prices Amid Lower Demand Forecasts
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Oil prices have fallen to $82/barrel from over $96/barrel this year due to anticipated lower demand in 2024, especially from China.
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OPEC+ is considering further production cuts at its rescheduled meeting this week to prop up prices. Saudi Arabia and Russia may extend their 1 million and 300,000 barrel per day cuts.
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Oil production is increasing in non-OPEC countries like the U.S., Guyana, and Brazil, which could meet demand growth in 2024 without OPEC cuts.
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Iran has increased oil exports to 3.1 million barrels per day, up 30% since 2021, adding to global supply.
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Lower production quotas are squeezing revenues for OPEC members like Saudi Arabia, but cuts help keep prices from collapsing as in 2020.