Oil prices managed to stay at the $70 a barrel mark, despite pressure from production cuts. For the first time since July, monthly OPEC production fell in November to 27.81 million barrels per day (bpd). This represented a 90,000-bpd drop compared to October, Reuters data showed.
In addition, November oil imports dropped 9.2 percent year-on-year (YoY), its first decline since April. This was largely due to orders slowing primarily from China and other independent refiners.
Moreover, analysts say current oil prices may further decline to $67 a barrel. A push to this level may cause stiff buying pressure. Alternatively, however, prices could reach $73 a barrel when demand improves.
Read: Oil prices recover after falling to lowest levels in six months
Committed to production cuts
And despite oil prices struggling, OPEC+ members remain committed to production cuts. Russian President Vladimir Putin visited Saudi Arabia and the UAE recently to firm up this position.
The meetings concluded with all sides stressing the importance of their cooperation. The y also underscored the need for all participating countries to join the OPEC+ agreement and keep Oil prices steady.
Oil prices outlook
Experts say the oil producing bloc is eyeing oil prices to reach the $80 a barrel mark. The biggest member of OPEC excluded from the cuts is Iran. The country is keen on boosting production to reach output of 3.6 million bpd by March 20 next year.
In 2024, OPEC’s oil production is expected to further decline after a new round of production cuts in the first quarter of next year. The move is said to be part of efforts to avoid volatility and speculation in the market.
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