Oil prices are anticipated to experience an increase in the upcoming year as certain OPEC+ oil producers have voluntarily committed to reducing output.
In an official statement released on Thursday, the oil cartel did not formally endorse production cuts; however, individual countries declared voluntary reductions amounting to 2.2 million barrels per day for the first quarter of 2024.
The primary contributor to these cuts is Saudi Arabia, the leading member of OPEC, which has agreed to extend its voluntary production cut of 1 million barrels per day—enforced since July—until the conclusion of the first quarter of 2024. Additionally, Russia has announced a reduction in supply by 300,000 barrels per day of crude and 200,000 barrels per day of petroleum products during the same period.