Due to predictions that OPEC+ would expand or intensify production restrictions, crude oil prices ended the day up 1.17% at 6488. Market anticipation has increased due to ongoing discussions within OPEC+ about the oil policy for 2024; there is no anticipated delay to the planned meeting on Thursday.
Previous difficult OPEC+ production quota discussions, most notably in June, resulted in the continuation of current oil supply curbs through 2024. Members of OPEC+, which includes Saudi Arabia and Russia, have committed to reducing world oil production by a total of nearly 5 million barrels per day, or roughly 5% of the daily demand.
Since late 2022, several initiatives to stabilise the oil market have been put into action. Contrary to predictions of a 933,000-barrel decline, the Energy Information Administration in the United States revealed an unexpected increase in oil reserves of 1.6 million barrels.
The amount of petrol in stock increased by 1.8 million barrels, somewhat differentiating from a survey that predicted an increase of 229,000 barrels. Still, net imports of crude oil into the United States decreased by 665,000 barrels per day.
