Potential 2024 OPEC Production Cuts Cause Brief Spike in Oil Prices

Potential 2024 OPEC , Production Cuts Cause , Brief Spike in Oil Prices.

On December 5, oil prices briefly spiked after Russia suggested continued OPEC production cuts in 2024.

Markets Insider reports that Russian Deputy Prime Minister Alexander Novak warned of more potential production cuts through Q1 of next year.

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Markets Insider reports that Russian Deputy Prime Minister Alexander Novak warned of more potential production cuts through Q1 of next year.

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The warning to energy markets caused both Brent crude and West Texas Intermediate to initially rally around 1%.

However, oil prices turned lower shortly after that initial climb, with both Brent and WTI falling approximately 0.8%.

OPEC has already committed to cutting production by 2.2 million barrels per day through Q1 of 2024.

The news comes after OPEC slashed production multiple times in 2023.

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Markets Insider reports that Saudi Arabia's energy chief previously said the cuts were meant to boost crude prices and smooth out volatility in the oil market.

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In September, Russia and Saudi Arabia took extra steps to apply pressure to the oil supply, agreeing to cut production by an additional 1.3 million barrels.

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That news briefly shot oil prices up to a 10-month high, however, crude prices have fallen a total of about 20% amid slowing global growth.

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Last week, Goldman Sachs strategists suggested that supply disruptions in the Middle East could drive oil prices back up to $100 a barrel in 2024.