On Wednesday, crude oil prices experienced a decline, negating earlier gains after Saudi Arabia announced further output cuts as part of a deal among OPEC+ nations to extend production cuts announced in April into next year.
Brent crude dropped almost 1% to $75.73 a barrel, while US West Texas Intermediate (WTI) fell 0.7% to $71.23 a barrel. Geopolitical tensions, supply and demand fluctuations, and concerns over the US debt ceiling talks and China's recovery have impacted oil prices throughout the year.
Although Saudi Arabia's decision to cut production by 1 million barrels per day starting July was expected to increase prices, Citi analysts believe that the move may not result in a sustainable price increase.
UAE also plans to extend its voluntary cut of 144,000 bpd until December 2024. The Senate's approval of a bill to raise the debt ceiling and impose spending restrictions until the 2024 election has helped bolster oil prices. OPEC+ will hold its next policy meeting on November 26, 2023, in Vienna, Austria.
