WTI crude futures experienced a downturn, dropping below the $75 mark per barrel on Monday. This decline continues the recent trend, with investors closely monitoring the upcoming OPEC+ meeting. The meeting’s outcome is uncertain, with speculation about whether the group will opt for further output reductions in 2024.
Factors Influencing the Market
The postponement of an OPEC+ ministerial meeting to November 30, primarily due to disagreements over output quotas for African producers, added to the pressure on oil prices. Additionally, signs of abundant supplies, especially from non-OPEC countries, have been influencing the market. In the United States, crude inventories have been rising more than expected, contributing to the downward price trend.
Global Oil Market Outlook
Despite the ongoing dynamics and the potential for OPEC+ to extend supply cuts into 2024, the International Energy Agency anticipates a slight surplus in the global oil markets next year. This forecast adds another layer to the complex market scenario.