OPEC+ has placed the market price of crude oil below $80 per barrel in the global commodities market.
This occurred after the Organization of Petroleum Exporting Countries and Allies (OPEC+) decision to extend supply cuts.
On Tuesday, ING commodities strategists said Brent crude price settled almost 3.39% lower on the day and below US$79 per barrel – a level last seen in February.
The American benchmark West Texas Intermediate (WTI) traded increased by 0.16% to $77.11 per barrel compared to the previous session that closed at $76.99 per barrel.
The extension of additional voluntary supply cuts into 3Q-2024 leaves the market in deficit over the upcoming quarter, the gradual return of 2.2 million barrels per day of supply from October 2024 through to September 2025 risks leaving the market in surplus through 2025.
“One must question how long some members will be willing to hold a substantial amount of supply from the market and give market share away to non-OPEC+ producers. The various cuts from the group currently add up to almost 6 million barrels per day.”.
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