OPEC+ Approves Additional Oil Output Cuts, Impacting Global Prices

OPEC+ announces additional oil cuts, impacting global prices. Explore the effects on oil markets and potential implications for consumers.

Nov 30, 2023 - 11:33
Nov 30, 2023 - 11:33
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OPEC+ Approves Additional Oil Output Cuts, Impacting Global Prices
OPEC+ Approves Additional Oil Output Cuts, Impacting Global Prices

OPEC+ has agreed to cut even more oil production—1 million barrels per day! This move, combined with Saudi Arabia reducing another 1 million barrels daily, might make oil prices go up.

News is coming from many places that the OPEC+ group made this decision at their meeting. Members will vote on it soon. Right now, West Texas Intermediate (WTI) oil is a bit lower at about $78 per barrel. But Brent crude, which is used as a standard, went up 1% to about $84.

KPMG's Angie Gildea says this might affect people in the U.S. when they fill up their cars. She says, "Even though more oil is being made in the U.S., Guyana, and Brazil, people in the U.S. might still pay more for gas."

Experts were thinking OPEC+ would keep the cuts going into next year. Some even thought they might cut even more.

Oil prices are almost 20% lower than they were in September. This is because there's more oil around, and people might not need as much. Andy Lipow from Lipow Oil Associates says, "I think over the next couple of months, we’re going to continue to see pressure on these prices.

Also Read: Oil Market News Update: Brent Slips Below $80 Amidst OPEC+ Meeting Uncertainties

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