Nov 04, V7N- Eight members of the OPEC+ coalition announced on Sunday that they would extend their oil production cuts of 2.2 million barrels per day until December 2024, aiming to stabilize oil prices in a market facing weak demand and robust supply. This decision, affecting Saudi Arabia, Russia, Algeria, Iraq, Kazakhstan, Kuwait, Oman, and the UAE, comes just ahead of the U.S. presidential election, with analysts predicting only a modest impact on oil prices unless OPEC+ enacts further cuts.
 
Oil prices have been under pressure recently due to slowing demand, notably from China, and a surplus from non-OPEC producers. While the cuts are intended to buoy prices, Swissquote Bank’s Ipek Ozkardeskaya cautioned that any price lift would likely be temporary without additional restrictions. She noted that OPEC+’s influence on global oil supply has diminished, as it now represents less than half of the global production.
 
According to Jorge Leon of Rystad Energy, the U.S. election on November 5 could be a pivotal moment for the oil market, especially if Donald Trump were to win, potentially leading to a trade war that could weaken oil demand. OPEC+ ministers plan to convene in December in Vienna, but the group has already decided to hold production cuts steady until at least 2025, despite earlier intentions to ramp up output from October.
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