OPEC+ Considers Increasing Oil Production Cuts in Upcoming Meeting

Three sources from OPEC+ informed Reuters that the group is set to discuss whether to implement additional cuts in oil supplies when it meets later this month, following a price drop of about 20 percent since late September. Oil prices have fallen to around $79 per barrel for Brent crude, down from the highest level of 2023 recorded in September near $98. Concerns about demand and a potential surplus next year have weighed on prices, despite support from OPEC+ cuts and the conflict in the Middle East. Saudi Arabia, Russia, and other OPEC+ members have already committed to reducing total oil production by 5.16 million barrels per day, which is approximately five percent of global daily demand, in a series of steps that began in late 2022. The cuts include 3.66 million barrels per day from OPEC+ and additional voluntary cuts from Saudi Arabia and Russia.