OPEC+ Cuts Fail to Impress, Raising Doubts Over Group's Influence and Unity
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OPEC+ announced additional voluntary production cuts, removing the expected oil surplus in Q1 2024 and potentially lending some upside to prices.
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The voluntary nature of the cuts suggests unity in OPEC+ is eroding, which could make coordinated action more difficult going forward.
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The cuts fell short of expectations, with under 900,000 bpd in truly incremental cuts, failing to provide a clear signal to move markets.
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Some question OPEC's actual ability to control oil markets rather than just serving as a political bargaining chip and convenient scapegoat.
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The voluntary cuts may further undermine perceptions of OPEC's legitimacy and coordinated influence over oil prices.