Select Language

OPEC+ extends oil production cuts until the end of December

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. OPEC+ extends oil production cuts until the end of December

World FX news

search
Breaking news

OPEC+ extends oil production cuts until the end of December

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.04 09:32
OPEC+ extends oil production cuts until the end of December

update 2024.11.04 09:32

A larger group called OPEC+, consisting of OPEC members plus other oil-producing countries, have agreed to extend their oil production cut to 2.2 million barrels per day (bpd) until the end of December 2024. 

The countries also reiterated their commitment to "achieve full conformity" with their production targets and to compensate for any overproduction by September 2025.  

Market reaction

At the time of press, WTI was up 1.81% on the day at $70.35. 

WTI Oil FAQs

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as "light" and "sweet" because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered "The Pipeline Crossroads of the World". It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API's report is published every Tuesday and EIA's the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

 

Date

Created

 : 2024.11.04

Update

Last updated

 : 2024.11.04

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

Gold Price Forecast: XAU/USD posts modest gains to near $2,750, eyes on US presidential election, Fed decision

Next article

Odds of a Harris win against Trump jump further

prev

Most viewed

USD/INR rises as equity outflows weigh on Indian Rupee

The Indian Rupee (INR) extends its downside on Tuesday after closing at a new all-time low in the previous session.
New
update2024.11.05 12:00

WTI inches lower to near $71.00 ahead of US presidential election

West Texas Intermediate (WTI) Oil price edges lower due to uncertainties surrounding the results of the US presidential election on Tuesday.
New
update2024.11.05 11:56

China's Premier Li: Confident of meeting this year's growth target

China's Premier Li Qiang said at an Import Expo in Shanghai on Tuesday that he is "confident of meeting this year's growth target." Additional comments Must build a stronger consensus for opening up.
New
update2024.11.05 11:48

Gold Price Forecast: XAU/USD traders appear non-committal on the US election day

Gold price is miring in five-day lows near $2,730 in Asian trading on Tuesday, lacking a clear direction.
New
update2024.11.05 11:38

Japanese Yen hovers near one-week top against USD as US election looms large

The Japanese Yen (JPY) ticks lower against its American counterpart during the Asian session on Tuesday and moves away from a one-week high touched the previous day.
New
update2024.11.05 11:25

Australian Dollar appreciates following PMI data, awaits RBA policy decision

The Australian Dollar (AUD) maintains its position after registering gains in the previous session following improved Purchasing Managers Index (PMI) data released on Tuesday.
New
update2024.11.05 11:15

China's Caixin Services PMI jumps to 52.0 in October vs. 50.5 expected

China's Services Purchasing Managers' Index (PMI) rose to 52.0 in October from 50.3 in September, the latest data published by Caixin showed on Tuesday.
New
update2024.11.05 10:46

NZD/USD softens below 0.6000 as RBNZ says economic downturn could get worse

The NZD/USD pair weakens to near 0.5970 on Tuesday during the Asian trading hours.
New
update2024.11.05 10:36

PBOC sets USD/CNY reference rate at 7.1016 vs. 7.1203 previous

On Tuesday, the People's Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1016, as compared to the previous day's fix of 7.1203 and 7.1019 Reuters estimates.
New
update2024.11.05 10:17

RBNZ: Economic conditions remain challenging, businesses facing difficulties

The Reserve Bank of New Zealand (RBNZ) stated on Tuesday that the economic conditions remain challenging and business is doing it tough.
New
update2024.11.05 09:51

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel