OPEC+ Continue to Extend Cutbacks On Oil Production Till Second Quarter of 2024
The global oil industry is going through hard times since OPEC+ (Organization of Petroleum Exporting Countries), like Russia, has imposed cutbacks on exports. Analysts in the oil industry expect the cutbacks on oil exports to continue till the second quarter of 2024.
Surveys done by the oil industry predict that OPEC+ countries are expected to extend the cutback on oil exports till the second quarter of 2024. However, another survey in the oil sector suggests that OPEC+ countries are not supposed to make any changes in their production plans till the second quarter of 2024. According to the Energy Information Administration (EIA), crude oil prices are expected to increase based on the current price of the oil. Experts suggest that the rise in crude oil prices depends on the OPEC+ production cuts leading to global stock draws of 810,000 barrels daily. This resulted in an increase in the price of Brent from USD 78 per barrel to USD 85 per barrel in March 2024. The Brent price was USD 78 per barrel in December 2023. However, experts anticipate a fall in crude oil prices in April 2024, a reason for increased oil consumption and consumer demand. Another oil industry official mentions that the oil supply is increasing the demand for it, thus keeping the oil prices balanced. Therefore, OPEC+ has kept that oil distant from the market in 2024.OPEC+ has not declared the extension of cutbacks on oil exports till the second quarter of 2024. However, experts anticipate that OPEC+ may increase the production cuts after some member countries continue overproduction of oil in January 2024. However, the global energy sector will shift to green energy consumption by the end of 2050 as countries take the necessary steps towards it. Therefore, global oil consumption in the next five years may decline as it has been fluctuating for the past two years due to the economic conditions of the countries.
