London, 21 December 2023
Due to disagreements within OPEC, WTI crude oil futures ended a three-day rally on Thursday by falling below $74 per barrel.
Due to disagreements within OPEC, WTI crude oil futures ended a three-day rally on Thursday by falling below $74 per barrel.
Angola's 16-year exit from OPEC raised doubts about the group's capacity to maintain world price stability in the face of disagreements over oil production quotas. Due to concerns over OPEC's capacity to tighten the market in the next quarter and the United States' rapidly increasing output, oil prices are expected to see their first yearly decrease since 2020.
Data from the Energy Information Administration verified that last week's US daily output hit a record-breaking 13.3 million barrels.
Furthermore, because the majority of Middle Eastern crude is shipped via the Strait of Hormuz, the Red Sea conflict including Houthi attacks on ships has disrupted international trade, albeit the impact on the oil supply is still minimal for the time being. (Source: Trading Economics // Edited by, The Decision Maker - Finance editors)