Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Oil falls on doubts OPEC+ will make further cuts

Published Dec 03, 2023 08:38PM ET Updated Dec 04, 2023 05:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
 
LCO
+0.92%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Erwin Seba

HOUSTON (Reuters) -Oil prices fell on Monday on concern about a drop in demand and on continued uncertainty about the depth and duration of OPEC+ supply cuts.

Brent crude futures settled down 85 cents, or 1.08%, at $78.03 a barrel. U.S. West Texas Intermediate crude futures finished down $1.03, or 1.39%, at $73.04.

Monday's fall adds to a 2% decline last week after the supply cuts announced on Thursday by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+.

"The market has decided (OPEC+ production plans) are not going to have that much of an impact. It's more style over substance," said Andrew Lipow, president of Lipow Oil Associates, said about crude traders on Monday.

Saudi Arabia's energy minister Prince Abdulaziz bin Salman said in a televised interview with Bloomberg on Monday that he expected OPEC and its allies to bring about the 2.2 million in crude oil production cuts announced last week.

"I honestly believe that the delivery of the 2.2 will happen," Bin Salman said. "I honestly believe that will continue to happen (and the) 2 million will overcome even the huge inventory build that usually happens in the first

quarter."

OPEC+ last week announced production cuts that are voluntary in nature, raising doubts about whether or not producers would fully implement them. Investors were also unsure about how the cuts would be measured.

Traders over the past five months have waited to see if cuts in production as well as predicted changes in demand would come to fruition, said Zane Curry, vice president of markets and research for Mobius Risk Group.

"We've become Missouri, the Show-Me state," Curry said.

Surveys on Friday showed global manufacturing activity remained weak in November on soft demand, with euro zone factory activity contracting, while there were mixed signs on the strength of China's economy.

"The OPEC+ 'deal' last week was unconvincing to say the least," said Craig Erlam, analyst at brokerage OANDA. "And with markets seemingly anticipating more of an economic slowdown next year, the announcement simply doesn't go far enough."

Elsewhere, Western countries have stepped up efforts to enforce the $60 a barrel price cap on seaborne shipments of Russian oil imposed to punish Moscow for its war in Ukraine.

Washington on Friday imposed additional sanctions on three entities and three oil tankers.

Oil falls on doubts OPEC+ will make further cuts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Chef khushvinder
Chef khushvinder Dec 04, 2023 7:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please help someone oil will go again up
Gandalf Gray
Wacio Dec 04, 2023 7:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First it will fall as the economy stagnates, goes into recession.
Salvador Hernández Sánchez
Salvador Hernández Sánchez Dec 04, 2023 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Israel attack more that russia …. Yesterday kills 700 in gaza
Ken Roth
Ken Roth Dec 04, 2023 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well if 80 % of the dead are hamas soldiers or hamas supporters whats the problem
First Last
First Last Dec 04, 2023 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How many did Russia killed in Ukraine?
First Last
First Last Dec 04, 2023 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How much support have Gazans given to Russian invasion of Ukraine?  How much support to Ukraine?  How much support has Ukraine given the Palestinians?
Carl Tom
Carl Tom Dec 04, 2023 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Theatrics....normal
Barry Nickerson
Subbuilder Dec 04, 2023 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Real sanctions would have capped Russian oil at $25 a barrel, but the U.S. drillers would never have allowed that to happen.
Ken Roth
Ken Roth Dec 04, 2023 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why not? The oil cap on russia will only increase demand for US oil.
First Last
First Last Dec 04, 2023 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If the $60 cap isn't "real", why are they complaining so much about it?
Barry Nickerson
Subbuilder Dec 04, 2023 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ken Roth Russia sells its oil regardless of caps.  If they were forced to sell at $25, many countries would have said the heck with peace, and clamored to buy it.  US OIL would have had to cut their own prices.
Barry Nickerson
Subbuilder Dec 04, 2023 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First Last I haven't seen ANY news articled where Russia says to remove the cap or else (fill in the blank).  It is not hurting them as there are still buyers and probably many shady middle-men steering that oil to where it supposedly isn't.
First Last
First Last Dec 04, 2023 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Russia rejects $60-per-barrel cap on its oil, warns Western countries of cutoffs"  --  pbs.org
Ndrew Wen
Ndrew Wen Dec 04, 2023 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cut is cut. Voluntary or not is still cut
Otis Grant
Otis Grant Dec 04, 2023 5:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Imagine how greedy one has to be to hope and pray for higher oil prices that screw your fellow consumer just for profit. The lowest of the low. 75 per barrel is quite high actually
OBiwan Kenobi
OBiwan Kenobi Dec 04, 2023 5:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This highlights an interesting paradox.  When oil prices were high, the Biden Administration begged those who could to produce more oil.  They said that it was un-American not to increase supplies because withholding oil hurts Americans.  So, billions of dollars was invested to produce that oil and prices retreated.  Still, if they come down too far, those investors who funded the relief, will not get their money back, or will make less than market returns.  So they hope that prices will stay high *enough* to make a reasonable return--but this desire makes them "The lowest of the low."   When we have made it painful enough for investors to stop investing in American oil you can be sure that our enemies will use that opportunity to hold us over an oil barrel and hurt us if they can.   You can't have it both ways.  You can't assault investors for not producing AND attack them for wanting to make a reasonable return.    Not everyone who has money or invests in oil is evil.
First Last
First Last Dec 04, 2023 5:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
OBiwan Kenobi   A lot of those calling for higher oil prices are motivated by politics, not their investments.
Poriya Dharmendra
Poriya Dharmendra Dec 04, 2023 1:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Andy Schooler
Andy Schooler Dec 04, 2023 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Absolute joke. We are at 90 in 2 weeks
Mahwish Rehman
Mahwish Rehman Dec 04, 2023 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How can u say that
Lio Gutierrez
Lio Gutierrez Dec 04, 2023 12:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Correction to the title oil algo trader bots programmed to short sell to suppress oil prices and ignore fundamentals.
Abdul Jabbar Md Salleh
Abdul Jabbar Md Salleh Dec 04, 2023 12:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what is the fundamentals ignored here?
Rubbing Hands
Rubbing Hands Dec 03, 2023 9:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
just a ploy to let Venezuela ship and sell as much oil as possible for a few months. Pay their debts and keep the corruption rolling. Biden is a traitor to Americans.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email