Oil prices climbed on Monday after OPEC+ announced plans to cut output again in 2024, in a bid to boost prices and counteract the macroeconomic challenges that have been impacting markets.
West Texas Intermediate (WTI) crude rose 1.6% to $72.86 a barrel, while Brent crude increased by 1.5% to $77.24 a barrel. OPEC+ has agreed to adjust the overall level of crude oil production to 40.5 million barrels per day (bpd) for 2024, which is roughly 1.4 million bpd below the current output targets.
Saudi Arabia has pledged an additional 1 million bpd voluntary cut from July, while the UAE has extended its voluntary cut of 144,000 bpd until the end of December 2024. Analysts predict that the decision could lead to higher oil prices in the future, with Brent prices potentially rising by $1-$6 per barrel in December. OPEC+ will hold its next policy meeting in Vienna on November 26, 2023.
