An agreement was reached overnight. Further production cuts to come on top of the 2023 decision. These additional cuts will run through to the end of 2024. They have decided to cut the level of overall crude oil production to 40.46 million barrels per day (bpd), starting 1/1/24 until 31/12/24. This cut would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand which is quite significant.
Oil prices should respond well to this news throughout the course of Mondays trade imo. In April, when the previous oil production cuts were announced, oil prices surged $9 on the back of this news. You would expect something similar to play out after the fall back of oil prices in recent weeks imo.
BPT Price at posting:
$1.43 Sentiment: Buy Disclosure: Held
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