The OPEC+ group has extended their production cut to limit excess supplies and stabilize prices in global oil markets. Oil has been trading in a tight range since the second half of 2022, with prices broadly congested within $97-$65 per barrel.
OPEC+ production policies significantly impact global oil markets, with higher prices typically following production cuts. China’s declining oil demand growth is weighing prices, as it is the world’s second-largest consumer and largest importer.
US and non-OPEC countries’ output is rising, limiting price rise. The ongoing Russia-Ukraine war and Middle East conflicts could further weaken global growth, leading to weaker demand for oil. The extent of price fluctuations depends on the conflict’s severity and major oil producers’ response to manage supply levels.
As supply-demand dynamics remain balanced, prices remain steady. Still, factors such as a volatile US dollar, Chinese government efforts, easing geopolitical conflicts, and changes in production policies could influence prices in the coming days.
